EDITORS I VIEW
Rational readjustment
eading some analysis of the changing dynamics of the global solar and PV industries, you could be mistaken into believing that the recent changes to the global industry were a complete surprise to industry and analysts alike. These attitudes more reflect individual desire for how things could be rather than the reality of how things are.
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No industry truly wants success only to come from government hand outs but that is exactly the situation the overall industry found itself in, albeit the subsidies were broad in scope and geographical offerings. Over the last 18 months the largest providers of the tariff system, Germany, France, Italy and Spain have all reduced or removed subsidy support for an industry that competition claim no longer need support.
The answer as to whether the industry continues to needs support or not depends whether the question is viewed from a purely economical angle or whether the social goals behind such support are considered important to the long term goals of the industry.When the solar tariff programme began in Germany decades ago it was not to create an opportunity for the financial world to make irrational profits but to establish a renewable alternative to fossil fuel energy extraction that had come under scrutiny as humans finally acknowledged they lived on a massive floating ball in space that had limited resources.
In every case the decision by a government to implement subsidies to an industry that was unable to financially break even was done in the spirit of kick starting alternative energy options to that region with the longer term goal of reducing the need for fossil fuel sources and for regions to control their own energy need
futures.Many countries have discovered to their cost that if you do not implement the right tariff level at the right time you are likely to be inundated by the very financial sharks countries were trying to be less reliant upon.Once the financial world turned its attention to solar power the subsidies became more of a blank cheque to profits as companies saw opportunities arise from unchanging subsidies and dropping panel prices.
The inability of governments to create a subsidy system that reflects and reacts to the changing technology and opportunities has been a major factor leading to the global uncertainty of which way the industry will
develop.Many poorer quality companies in some regions, including China are falling by the wayside and there is a real danger of poor quality products being dumped on the market which will continue to muddy the actually energy potential of the sun. The more bad product there is the less trust there is in consumers. This is still an issue the industry has made little steps to address.Whether through standards or agreements between key players.
The day of the free dollar is long and truly gone and the industry will now enter a phase where the real players will make their marks unencumbered by the financial sharks swimming the industry waters seeking fast returns with little long term vision. Solar will provide for all our futures.
David Ridsdale Editor in Chief
Issue X 2011 I
www.solar-pv-management.com 3
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