Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Declining prices make it hard to justify investment.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 28th, 2012 at 06:03:44 AM EST
[ Parent ]
Because we're going to stop wanting electricity?
by Colman (colman at eurotrib.com) on Wed Mar 28th, 2012 at 06:08:15 AM EST
[ Parent ]
No, the point is that in the unlikely event that the fantasies of solar advocates come true, and the price of solar cells continues to freefall until solar + storage is significantly cheaper than coal, then everyone who built solar installations at all the intermediate price points before that are going to loose their financial investment.
by Thomas on Wed Mar 28th, 2012 at 10:29:02 AM EST
[ Parent ]
FiTs would offload this fiscal loss onto the treasury, but it would still exist.
by Thomas on Wed Mar 28th, 2012 at 10:30:16 AM EST
[ Parent ]
So you're saying we should nationalise the effort?
by Colman (colman at eurotrib.com) on Wed Mar 28th, 2012 at 10:31:41 AM EST
[ Parent ]
But this is a case where the fiscal loss is exceeded by the gainful externalities: If nobody buys solar cells today, there will not be a cost reduction tomorrow.

A central assumption of post-Fordist economic doctrines is that you can separate research and development from the physical production. This is a conceit with no basis in reality: The assembly line is customer, testbed and laboratory for industrial engineering. Remove the assembly line, and you will lose the R&D capability within less than a generation.

Whether the assembly line is dismantled to be shipped to China or dismantled because of inadequate demand for the end product is, for this purpose, totally immaterial.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Mar 28th, 2012 at 02:34:22 PM EST
[ Parent ]

Display:

Occasional Series