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 neiqhbouring developing countries, interstate cooperation in hydropower development could revolutionize supply potential, especially in Africa.

77. Solar energy use is small globally, but it is beginning to assume an important place in the energy consumption patterns of some countries. Solar water and household heating is widespread in many parts of Australia, Greece, and the Middle East. A number of East European and developing countries have active solar energy programmes, and the United States and Japan support solar sales of several hundred million dollars a year. With constantly improving solar thermal and solar electric technologies, it is likely that their contribution will increase substantially. The cost of photovoltaic equipment has fallen from around $500-600 per peak watt to $5 and is approaching the $1–2 level where it can compete with conventional electricity production. But even at $5 per peak watt, it still provides electricity to remote places more cheaply than building power lines.

78 Wind power has been used for centuries - mainly for pumping water. Recently its use has been growing rapidly in regions such as California and Scandinavia. In these cases the wind turbines are used to generate electricity for the local electricity grid. The costs of wind-generated electricity, which benefited initially from substantial tax incentives, have fallen dramatically in California in the last five years and may possibly be competitive with other power generated there within a decade. Many countries have successful but small wind programmes, but the untapped potential is still high.

79. The fuel alcohol programme in Brazil produced about 10 billion litres of ethanol from sugar-cane in 1984 and replaced about 60 per cent of the gasoline that would have been required. The cost has been estimated at $50-60 per barrel of gasolene replaced. When subsidies are removed, and a true exchange rate is used, this is competitive at 1981 oil prices. /…