Absorption chillers. Chillers that use heat energy from any source (solar, biomass, waste heat, etc.) to drive air conditioning or refrigeration systems. The heat source replaces the electric power consumption of a mechanical compressor. Absorption chillers differ from conventional (vapour compression) cooling systems in two ways: 1) the absorption process is thermochemical in nature rather than mechanical, and 2) the substance that is circulated as a refrigerant is water rather than chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs), also called Freon. The chillers generally are supplied with district heat, waste heat or heat from co-generation, and they can operate with heat from geothermal, solar or biomass resources.

Adsorption chillers. Chillers that use heat energy from any source to drive air conditioning or refrigeration systems. They differ from absorption chillers in that the adsorption process is based on the interaction between gases and solids. A solid material in the chiller’s adsorption chamber releases refrigerant vapour when heated; subsequently, the vapour is cooled and liquefied, providing a cooling effect at the evaporator by absorbing external heat and turning back into a vapour, which is then re-adsorbed into the solid.

Bagasse. The fibrous matter that remains after extraction of sugar from sugar cane.

Auction. (See Tendering.)

Behind-the-meter system. Any generation capacity, storage or demand management device on the customer side of the interface with the distribution grid.

Biodiesel. A fuel produced from oilseed crops such as soy, rapeseed (canola) and palm oil, and from other oil sources such as waste cooking oil and animal fats. Biodiesel is used in diesel engines installed in cars, trucks, buses and other vehicles, as well as in stationary heat and power applications. Also see Hydrotreated vegetable oil.

Bioenergy. Energy derived from any form of biomass (solid, liquid or gaseous) for heat, power and transport. (See Biofuel.)

Biofuel. A fuel derived from biomass that may include liquid fuel ethanol and biodiesel, as well as biogas. Biofuels can be combusted in vehicle engines as transport fuels and in stationary engines for heat and electricity generation. They also can be used for domestic heating and cooking (for example, as ethanol gels). Advanced biofuels are made from feedstocks derived from the lignocellulosic fractions of biomass sources or from algae. They are made using non-traditional biochemical and thermochemical conversion processes.

Biogas/Biomethane. Biogas is a gaseous mixture consisting mainly of methane and carbon dioxide produced by the anaerobic digestion of organic matter (broken down by microorganisms in the absence of oxygen). Organic material and/or waste is converted into biogas in a digester. Suitable feedstocks include agricultural residues, animal wastes, food industry wastes, sewage sludge, purpose-grown green crops and the organic components of municipal solid wastes. Raw biogas can be combusted to produce heat and/or power; it also can be transformed into biomethane through a process known as scrubbing that removes impurities including carbon dioxide, siloxanes and hydrogen sulphides, followed by compression. Biomethane can be injected directly into natural gas networks and used as a substitute for natural gas in internal combustion engines without fear of corrosion.

Biomass. Any material of biological origin, excluding fossil fuels or peat, that contains a chemical store of energy (originally received from the sun) and that is available for conversion to a wide range of convenient energy carriers.

Biomass energy, modern. Energy derived from combustion of solid, liquid and gaseous biomass fuels in high-efficiency conversion systems, which range from small domestic appliances to large-scale industrial conversion plants. Modern applications include heat and electricity generation, combined heat and power (CHP) and transport.

Biomass, traditional. Solid biomass including fuel wood, charcoal, agricultural and forest residues, and animal dung, that typically is used in rural areas of developing countries with traditional technologies such as open fires for cooking, kilns, and ovens for cooking and residential heating as well as small-scale agricultural and industrial processing. Often the use of traditional biomass leads to high pollution levels, forest degradation and deforestation.

Biomass pellets. Solid biomass fuel produced by compressing pulverised dry biomass, such as waste wood and agricultural residues. Pellets typically are cylindrical in shape with a diameter of around 10 millimetres and a length of 30-50 millimetres. Pellets are easy to handle, store, and transport and are used as fuel for heating and cooking applications, as well as for electricity generation and CHP. (Also see Torrefied wood.)

Building codes and standards. Rules specifying the minimum standards for buildings and other structures for increasing energy efficiency. These can refer to new and/or renovated and refurbished buildings.

Capacity. The rated capacity of a heat or power generating plant, which refers to the potential instantaneous heat or electricity output, or the aggregate potential output of a collection of such units (such as a wind farm or set of solar panels). Installed capacity describes equipment that has been constructed, although it may or may not be operational (e.g., delivering electricity to the grid, providing useful heat or producing biofuels).

Capacity factor. The ratio of the actual output of a unit of electricity or heat generation over a period of time (typically one year) to the theoretical output that would be produced if the unit were operating without interruption at its rated capacity during the same period of time.

Capital subsidy. A subsidy that covers a share of the upfront capital cost of an asset (such as a solar water heater). These include, for example, consumer grants, rebates or one-time payments by a utility, government agency or government-owned bank.

Combined heat and power (CHP) (also called co-generation). CHP facilities produce both heat and power from the combustion of fossil and/or biomass fuels, as well as from geothermal and solar thermal resources. The term also is applied to plants that recover “waste heat” from thermal power generation processes.

Community energy. An approach to renewable energy development that involves a community initiating, developing, operating, owning, investing and/or benefiting from a project. Communities vary in size and shape (e.g., schools, neighbourhoods, partnering city governments, etc.); similarly, projects vary in technology, size, structure, governance, funding and motivation.

Competitive bidding. (See Tendering.)

Concentrating photovoltaics (CPV). Technology that uses mirrors or lenses to focus and concentrate sunlight onto a relatively small area of photovoltaic cells that generate electricity (see Solar photovoltaics). Low-, medium- and high-concentration CPV systems (depending on the design of reflectors or lenses used) operate most efficiently in concentrated, direct sunlight.

Concentrating solar thermal power (CSP) (also called concentrating solar power or solar thermal electricity, STE). Technology that uses mirrors to focus sunlight into an intense solar beam that heats a working fluid in a solar receiver, which then drives a turbine or heat engine/generator to produce electricity. The mirrors can be arranged in a variety of ways, but they all deliver the solar beam to the receiver. There are four types of commercial CSP systems: parabolic troughs, linear Fresnel, power towers and dish/engines. The first two technologies are line-focus systems, capable of concentrating the sun’s energy to produce temperatures of 400°C, while the latter two are point-focus systems that can produce temperatures of 800°C or higher.

Conversion efficiency. The ratio between the useful energy output from an energy conversion device and the energy input into it. For example, the conversion efficiency of a PV module is the ratio between the electricity generated and the total solar energy received by the PV module. If 100 kWh of solar radiation is received and 10 kWh electricity is generated, the conversion efficiency is 10%.

Crowdfunding. The practice of funding a project or venture by raising money – often relatively small individual amounts – from a relatively large number of people (“crowd”), generally using the Internet and social media. The money raised through crowdfunding does not necessarily buy the lender a share in the venture, and there is no guarantee that money will be repaid if the venture is successful. However, some types of crowdfunding reward backers with an equity stake, structured payments and/or other products.

Curtailment. A reduction in the output of a generator, typically on an involuntary basis, from what it could produce otherwise given the resources available. Curtailment of electricity generation has long been a normal occurrence in the electric power industry and can occur for a variety of reasons, including a lack of transmission access or transmission congestion.

Degression. A mechanism built into policy design establishing automatic rate revisions, which can occur after specific thresholds are crossed (e.g., after a certain amount of capacity is contracted, or a certain amount of time passes).

Demand-side energy management. Primarily, the pursuit of cost-effective energy efficiency measures on the customer side for least-cost overall energy system optimisation. Also includes demand-side load shifting and conservation measures.

Distributed generation. Generation of electricity from dispersed, generally small-scale systems that are close to the point of consumption.

Distributed renewable energy. Energy systems are considered to be distributed if 1) the systems of production are relatively small and dispersed (such as small-scale solar PV on rooftops), rather than relatively large and centralised; or 2) generation and distribution occur independently from a centralised network. Specifically for the purpose of the chapter on Distributed Renewable Energy for Energy Access, “distributed renewable energy” meets both conditions. It includes energy services for electrification, cooking, heating and cooling that are generated and distributed independent of any centralised system, in urban and rural areas of the developing world.

Distribution grid. The portion of the electrical supply distribution network that takes power off the transmission network via substations and feeds electricity at varying voltages to customers.

Electric vehicle (EV) (also called electric drive vehicle). A vehicle that uses one or more electric motors for propulsion. A battery electric vehicle is a type of EV that uses chemical energy stored in rechargeable battery packs. A plug-in hybrid EV can be recharged by an external source of electric power. Fuel cell vehicles are EVs that use pure hydrogen (or gaseous hydrocarbons before reformation) as the energy storage medium.

Energiewende. German term that means “transformation of the energy system”. It refers to the move away from nuclear and fossil fuels towards an energy system based primarily on energy efficiency improvements and renewable energy.

Energy. The ability to do work, which comes in a number of forms including thermal, radiant, kinetic, chemical, potential and electrical. Primary energy is the energy embodied in (energy potential of) natural resources, such as coal, natural gas and renewable sources. Final energy is the energy delivered for end-use (such as electricity at an electrical outlet). Conversion losses occur whenever primary energy needs to be transformed for final energy use, such as combustion of fossil fuels for electricity generation.

Energy audit. Analysis of energy flows in a building, process or system, conducted with the goal of reducing energy inputs into the system without negatively affecting outputs.

Energy efficiency. The measure that accounts for delivering more services for the same energy input, or the same amount of services for less energy input. Conceptually, this is the reduction of losses from the conversion of primary source fuels through final energy use, as well as other active or passive measures to reduce energy demand without diminishing the quality of energy services delivered.

Energy efficiency mandate/obligation. A measure that requires designated parties (consumers, suppliers, generators) to meet a minimum, and often gradually increasing, target for energy efficiency. Mandates can include, for example, energy efficiency portfolio standards (EEPS) and/or building codes or obligations.

Energy efficiency target. An official commitment, plan or goal set by a government (at the local, state, national or regional level) to achieve a certain amount of energy efficiency by a future date. Targets may be backed by specific compliance mechanisms or policy support measures. Some targets are legislated, while others are set by regulatory agencies, ministries or public officials.

Energy intensity. Primary energy consumption per unit of economic output. Energy intensity typically is used as a proxy for energy efficiency in macro-level analyses due to the lack of an internationally agreed-upon high-level indicator for measuring energy efficiency.

Energy service company (ESCO). A company that provides a range of energy solutions including selling the energy services from a (renewable) energy system on a long-term basis while retaining ownership of the system, collecting regular payments from customers and providing necessary maintenance service. An ESCO can be an electric utility, co-operative, non-governmental organisation or private company, and typically installs energy systems on or near customer sites. An ESCO also can advise on improving the energy efficiency of systems (such as a building or an industry) as well as on methods for energy conservation and energy management.

Ethanol (fuel). A liquid fuel made from biomass (typically maize, sugar cane or small cereals/grains) that can replace petrol in modest percentages for use in ordinary spark-ignition engines (stationary or in vehicles), or that can be used at higher blend levels (usually up to 85% ethanol, or 100% in Brazil) in slightly modified engines, such as those provided in “flex-fuel” vehicles. Ethanol also is used in chemical and beverage industries.

Feed-in policy (feed-in tariff or feed-in premium). A policy that typically guarantees renewable generators specified payments per unit (e.g., USD per kWh) over a fixed period. Feed-in tariff (FIT) policies also may establish regulations by which generators can interconnect and sell power to the grid. Numerous options exist for defining the level of incentive, such as whether the payment is structured as a guaranteed minimum price (e.g., a FIT), or whether the payment floats on top of the wholesale electricity price (e.g., a feed-in premium).

Final energy. The part of primary energy, after deduction of losses from conversion, transmission and distribution, that reaches the consumer and is available to provide heating, hot water, lighting and other services. Final energy forms include electricity, district heating, mechanical energy, liquid hydrocarbons such as kerosene or fuel oil, and various gaseous fuels such as natural gas, biogas and hydrogen.

Final energy consumption. Energy that is supplied to the consumer for all final energy services such as cooling and lighting, building or industrial heating or mechanical work including transport.

Fiscal incentive. An incentive that provides individuals, households or companies with a reduction in their contribution to the public treasury via income or other taxes.

Flywheel energy storage. Energy storage that works by applying available energy to accelerate a high-mass rotor (flywheel) to a very high speed and thereby storing energy in the system as rotational energy.

Generation. The process of converting energy into electricity and/or useful heat from a primary energy source such as wind, solar radiation, natural gas, biomass, etc.

Geothermal energy. Heat energy emitted from within the earth’s crust, usually in the form of hot water and steam. It can be used to generate electricity in a thermal power plant or to provide heat directly at various temperatures.

Green bond. A bond issued by a bank or company, the proceeds of which will go entirely into renewable energy and other environmentally friendly projects. The issuer will normally label it as a green bond. There is no internationally recognised standard for what constitutes a green bond.

Green energy purchasing. Voluntary purchase of renewable energy – usually electricity, but also heat and transport fuels – by residential, commercial, government or industrial consumers, either directly from an energy trader or utility company, from a third-party renewable energy generator or indirectly via trading of renewable energy certificates (such as renewable energy credits, green tags and guarantees of origin). It can create additional demand for renewable capacity and/or generation, often going beyond that resulting from government support policies or obligations.

Heat pump. A device that transfers heat from a heat source to a heat sink using a refrigeration cycle that is driven by external electric or thermal energy. It can use the ground (geothermal/ground-source), the surrounding air (aerothermal/air-source) or a body of water (hydrothermal/water-source) as a heat source in heating mode, and as a heat sink in cooling mode. A heat pump’s final energy output can be several multiples of the energy input, depending on its inherent efficiency and operating condition. The output of a heat pump is at least partially renewable on a final energy basis. However, the renewable component can be much lower on a primary energy basis, depending on the composition and derivation of the input energy; in the case of electricity, this includes the efficiency of the power generation process. The output of a heat pump can be fully renewable energy if the input energy is also fully renewable.

Hydropower. Electricity derived from the potential energy of water captured when moving from higher to lower elevations. Categories of hydropower projects include run-of-river, reservoir-based capacity and low-head in-stream technology (the least developed). Hydropower covers a continuum in project scale from large (usually defined as more than 10 MW of installed capacity, but the definition varies by country) to small, mini, micro and pico.

Hydrotreated vegetable oil (HVO). A “drop-in” biofuel produced by using hydrogen to remove oxygen from waste cooking oils, fats and vegetable oils. The result is a hydrocarbon fuel that blends more easily with diesel and jet fuel than does biodiesel produced from triglycerides as fatty acid methyl esters (FAME).

Ice storage. Thermal energy storage using ice that utilises the large amount of heat given off by the fusion of water.

Inverter (and micro-inverter), solar. Inverters convert the direct current (DC) generated by solar PV modules into alternating current (AC), which can be fed into the electric grid or used by a local, off-grid network. Conventional string and central solar inverters are connected to multiple modules to create an array that effectively is a single large panel. By contrast, micro-inverters convert generation from individual solar PV modules; the output of several micro-inverters is combined and often fed into the electric grid. A primary advantage of micro-inverters is that they isolate and tune the output of individual panels, reducing the effects that shading or failure of any one (or more) module(s) has on the output of an entire array. They eliminate some design issues inherent to larger systems and allow for new modules to be added as needed.

Investment. Purchase of an item of value with an expectation of favourable future returns. In this report, new investment in renewable energy refers to investment in: technology research and development, commercialisation, construction of manufacturing facilities and project development (including the construction of wind farms and the purchase and installation of solar PV systems). Total investment refers to new investment plus merger and acquisition (M&A) activity (the refinancing and sale of companies and projects).

Investment tax credit. A fiscal incentive that allows investments in renewable energy to be fully or partially credited against the tax obligations or income of a project developer, industry, building owner, etc.

Joule. A joule (J) is a unit of work or energy equal to the energy expended to produce one watt of power for one second. The potential chemical energy stored in one barrel of oil and released when combusted is approximately 6 gigajoules (GJ); a tonne of oven-dry wood contains around 20 GJ of energy.

Labelling. A system in which the energy efficiency of the product/appliance is rated/listed on a label to inform customers of product energy performance so that they can select among various models. Labelling systems can be voluntary or mandatory.

Levelised cost of energy/electricity (LCOE). The unique cost price of energy outputs (e.g., USD/kWh or USD/GJ) of a project that makes the present value of the revenues equal to the present value of the costs over the lifetime of the project.

Long-term strategic plan. Strategy to achieve energy savings over a specified period of time (i.e., several years), including specific goals and actions to improve energy efficiency, typically spanning all major sectors.

Mandate/Obligation. A measure that requires designated parties (consumers, suppliers, generators) to meet a minimum, and often gradually increasing, target for renewable energy, such as a percentage of total supply, a stated amount of capacity, or the required use of a specified renewable technology. Costs generally are borne by consumers. Mandates can include renewable portfolio standards (RPS); building codes or obligations that require the installation of renewable heat or power technologies (often in combination with energy efficiency investments); renewable heat purchase requirements; and requirements for blending specified shares of biofuels (biodiesel or ethanol) into transport fuel.

Market concession model. A model in which a private company or non-governmental organisation is selected through a competitive process and given the exclusive obligation to provide energy services to customers in its service territory, upon customer request. The concession approach allows concessionaires to select the most appropriate and cost-effective technology for a given situation.

Merit order. A way of ranking available sources of energy (particularly electricity generation) in ascending order based on short-run marginal costs of production, such that those with the lowest marginal costs are the first ones brought online to meet demand, and those with the highest are brought on last. The merit-order effect is a shift of market prices along the merit-order or supply curve due to market entry of power stations with lower variable costs (marginal costs). This displaces power stations with the highest production costs from the market (assuming demand is unchanged) and admits lower-priced electricity into the market.

Micro-grids. These are similar to mini-grids, but there is no universal definition differentiating the two (see Mini-grids). For distributed renewable energy in developing countries, micro-grids typically refer to independent grid networks operating on a scale of 1-10 kW. In the United States, for example, micro-grids also refer to larger networks (up to several MW) that can operate independently of, or in conjunction with, an area’s main power grid. It can be intended as back-up power or to bolster main grid power during periods of heavy demand. It often is used to reduce costs, to enhance reliability and/or as a means of incorporating renewable energy.

Mini-grids. Grids that provide small-scale generation (10 kW to 10 MW) and distribution of grid-quality electricity to a relatively small and concentrated group of customers, most commonly in remote areas. They often are managed locally and can operate with or without interconnection to the wider external transmission grid.

Molten salt. An energy storage medium used predominantly to retain the thermal energy collected by a solar tower or solar trough of a concentrating solar power plant, so that this energy can be used at a later time to generate electricity.

Monitoring. Energy use is monitored to establish a basis for energy management and to provide information on deviations from established patterns.

Net metering/Net billing. A regulated arrangement in which utility customers with on-site electricity generators can receive credits for excess generation, which can be applied to offset consumption in other billing periods. Under net metering, customers typically receive credit at the level of the retail electricity price. Under net billing, customers typically receive credit for excess power at a rate that is lower than the retail electricity price. Different jurisdictions may apply these terms in different ways, however.

Ocean energy. Energy captured from ocean waves, tides, currents, salinity gradients and ocean temperature differences. Wave energy converters capture the energy of surface waves to generate electricity; tidal stream generators use kinetic energy of moving water to power turbines; and tidal barrages are essentially dams that cross tidal estuaries and capture energy as tides ebb and flow.

Off-take agreement. An agreement between a producer of energy and a buyer of energy to purchase/sell portions of the producer’s future production. An off-take agreement normally is negotiated prior to the construction of a renewable energy project or installation of renewable energy equipment in order to secure a market for the future output (e.g., electricity, heat). Examples of this type of agreement include power purchase agreements (PPAs) and FITs.

Off-taker. The purchaser of the energy from a renewable energy project or installation (e.g., a utility company) following an off-take agreement. See Off-take agreement.

Peaker generation plant. Power plants that generally run predominantly during peak demand periods for electricity. Such plants exhibit the optimum balance - for peaking duty - of relatively high variable cost (fuel and maintenance cost per unit of generation) relative to fixed cost per unit of energy produced (low capital cost per unit of generating capacity).

Power. The rate at which energy is converted into work, expressed in watts (joules/second).

Power purchase agreement (PPA). A contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer).

Power to gas. The conversion of electricity, either from renewable or conventional sources, to chemical energy.

Primary energy. The theoretically available energy content of a naturally occurring energy source (such as coal, oil, natural gas, uranium ore, geothermal and biomass energy, etc.) before it undergoes conversion to useful final energy delivered to the end-user. Conversion of primary energy into other forms of useful final energy (such as electricity and fuels) entails losses. Some primary energy is consumed at the end-user level as final energy without any prior conversion.

Primary energy consumption. The direct use of energy at the source, or supplying users with unprocessed fuel.

Product and sectoral standards. Rules specifying the minimum standards for certain products (e.g., appliances) or sectors (industry, transport, etc.) for increasing energy efficiency.

Production tax credit. A tax incentive that provides the investor or owner of a qualifying property or facility with a tax credit based on the amount of renewable energy (electricity, heat or biofuel) generated by that facility.

Prosumer. The idea that citizens are not just consumers but also have potential to be energy producers, particularly of renewable energy, playing an active role in the generation of energy, energy storage and demand-side management.

Public financing. A type of financial support mechanism whereby governments provide assistance, often in the form of grants or loans, to support the development or deployment of renewable energy technologies.

Pumped storage hydropower. Plants that pump water from a lower reservoir to a higher storage basin using surplus electricity, and that reverse the flow to generate electricity when needed. They are not energy sources but means of energy storage and can have overall system efficiencies of around 80-90%.

Regulatory policy. A rule to guide or control the conduct of those to whom it applies. In the renewable energy context, examples include mandates or quotas such as renewable portfolio standards, FITs and technology/fuel specific obligations.

Renewable energy certificate (REC). A certificate awarded to certify the generation of one unit of renewable energy (typically 1 MWh of electricity but also less commonly of heat). In systems based on RECs, certificates can be accumulated to meet renewable energy obligations and also provide a tool for trading among consumers and/or producers. They also are a means of enabling purchases of voluntary green energy.

Renewable energy target. An official commitment, plan or goal set by a government (at the local, state, national or regional level) to achieve a certain amount of renewable energy by a future date. Targets may be backed by specific compliance mechanisms or policy support measures. Some targets are legislated while others are set by regulatory agencies, ministries or public officials.

Renewable portfolio standard (RPS). An obligation placed by a government on a utility company, group of companies or consumers to provide or use a predetermined minimum targeted renewable share of installed capacity, or of electricity or heat generated or sold. A penalty may or may not exist for non-compliance. These policies also are known as “renewable electricity standards”, “renewable obligations” and “mandated market shares”, depending on the jurisdiction.

Reverse auction. (See Tendering.)

Sector coupling. The expanded use of varying energy sources across end-use sectors, such as the electrification of both transport and thermal applications in buildings and industry.

Smart energy system. An energy system that aims to optimise the overall efficiency and balance of a range of interconnected energy technologies and processes, both electrical and non-electrical (including heat, gas and fuels). This is achieved through dynamic demand- and supply-side management; enhanced monitoring of electrical, thermal and fuel-based system assets; control and optimisation of consumer equipment, appliances and services; better integration of distributed energy (on both the macro and micro scales); as well as cost minimisation for both suppliers and consumers.

Smart grid. Electrical grid that uses information and communications technology to co-ordinate the needs and capabilities of the generators, grid operators, end-users and electricity market stakeholders in a system, with the aim of operating all parts as efficiently as possible, minimising costs and environmental impacts and maximising system reliability, resilience and stability.

Smart grid technology. Advanced information and control technology that is required for improved systems integration and resource optimisation on the grid.

Solar collector. A device used for converting solar energy to thermal energy (heat), typically used for domestic water heating but also used for space heating, industrial process heat or to drive thermal cooling machines. Evacuated tube and flat plate collectors that operate with water or a water/glycol mixture as the heat-transfer medium are the most common solar thermal collectors used worldwide. These are referred to as glazed water collectors because irradiation from the sun first hits a glazing (for thermal insulation) before the energy is converted to heat and transported away by the heat transfer medium. Unglazed water collectors, often referred to as swimming pool absorbers, are simple collectors made of plastics and used for lower-temperature applications. Unglazed and glazed air collectors use air rather than water as the heat-transfer medium to heat indoor spaces or to pre-heat drying air or combustion air for agriculture and industry purposes.

Solar cooker. A cooking device for household and institutional applications, which converts sunlight to heat energy that is retained for cooking. There are five types of solar cookers: box cookers, panel cookers, parabolic cookers, evacuated tube cookers and trough cookers.

Solar home system (SHS). A stand-alone system composed of a relatively low-power photovoltaic module, a battery and sometimes a charge controller, that can power small electric devices and provide modest amounts of electricity to homes for lighting and radios, usually in rural or remote regions that are not connected to the electricity grid.

Solar photovoltaics (PV). A technology used for converting light into electricity. Solar PV cells are constructed from semiconducting materials that use sunlight to separate electrons from atoms to create an electric current. Modules are formed by interconnecting individual cells. Monocrystalline modules typically are slightly more efficient but relatively more expensive than multi-crystalline silicon modules, although these differences have narrowed with advances in manufacturing and technology. Thin film solar PV materials can be applied as flexible films laid over existing surfaces or integrated with building components such as roof tiles. Building-integrated PV (BIPV) generates electricity and replaces conventional materials in parts of a building envelope, such as the roof or facade.

Solar photovoltaic-thermal (PV-T). A solar PV-thermal hybrid system that includes solar thermal collectors mounted beneath PV modules to convert solar radiation into electrical and thermal energy. The solar thermal collector removes waste heat from the PV module, enabling it to operate more efficiently.

Solar pico system (SPS). A very small solar PV system – such as a solar lamp or an information and communication technology (ICT) appliance – with a power output of 1-10 watts that typically has a voltage of up to 12 volts.

Solar-plus-storage. A hybrid technology of solar PV with battery storage. Other types of renewable energy-plus-storage plants also exist.

Solar water heater (SWH). An entire system consisting of a solar collector, storage tank, water pipes and other components. There are two types of solar water heaters: pumped solar water heaters use mechanical pumps to circulate a heat transfer fluid through the collector loop (active systems), whereas thermosyphon solar water heaters make use of buoyancy forces caused by natural convection (passive systems).

Storage battery. A type of battery that can be given a new charge by passing an electric current through it. A lithium-ion battery uses a liquid lithium-based material for one of its electrodes. A lead-acid battery uses plates made of pure lead or lead oxide for the electrodes and sulphuric acid for the electrolyte and which remain common for off-grid installations. A flow battery uses two chemical components dissolved in liquids contained within the system and most commonly separated by a membrane. Flow batteries can be recharged almost instantly by replacing the electrolyte liquid, while simultaneously recovering the spent material for re-energisation.

Subsidy. A government measure that artificially reduces the price that consumers pay for energy or that reduces the production cost.

Tendering (also called auction / reverse auction or tender). A procurement mechanism by which renewable energy supply or capacity is competitively solicited from sellers, who offer bids at the lowest price that they would be willing to accept. Bids may be evaluated on both price and non-price factors.

Thermal energy storage. Technology that allows the transfer and storage of thermal energy. (See Ice storage and Molten salt.)

Torrefied wood. Solid fuel, often in the form of pellets, produced by heating wood to 200-300°C in restricted air conditions. It has useful characteristics for a solid fuel including relatively high energy density, good grindability into pulverised fuel and water repellency.

Transmission grid. The portion of the electrical supply distribution network that carries bulk electricity from power plants to substations where voltage is stepped down for further distribution. High-voltage transmission lines can carry electricity between regional grids in order to balance supply and demand.

Variable renewable energy (VRE). A renewable energy source that fluctuates within a relatively short time frame, such as wind and solar power, which vary within daily, hourly and even sub-hourly time frames. By contrast, resources and technologies that are variable on an annual or seasonal basis due to environmental changes, such as hydropower (due to changes in rainfall) and thermal power plants (due to changes in temperature of ambient air and cooling water), do not fall into this category.

Vehicle fuel standards. Rules specifying the minimum fuel economy of automobiles.

Voltage and frequency control. The process of maintaining grid voltage and frequency stable within a narrow band through management of system resources.

Watt. A unit of power that measures the rate of energy conversion or transfer. A kilowatt is equal to one thousand watts; a megawatt to one million watts; and so on. A megawatt-electrical (MW) is used to refer to electric power, whereas a megawatt-thermal (MWth) refers to thermal/heat energy produced. Power is the rate at which energy is consumed or generated. A kilowatt-hour is the amount of energy equivalent to steady power of 1 kW operating for one hour.

Yield company (yieldco). Renewable energy yieldcos are publicly traded financial vehicles created when power companies spin off their renewable power assets into separate, high-yielding entities. They are formed to reduce risk and volatility, and to increase capital and dividends. Shares are backed by completed renewable energy projects with long-term PPAs in place to deliver dividends to investors. They attract new types of investors who prefer low-risk and dividend-like yields, and those who wish to invest specifically in renewable energy projects. The capital raised is used to pay off debt or to finance new projects at lower rates than those available through tax equity finance.