Believe in Competition

One of the key components to having renewable energy achieving price parity with fossil fuels is the growth in global demand. As more systems are manufactured, efficiencies attributable to the learning curve and to economies of scale will allow the cost of RE systems to come down. However, in order to reach the global markets, you need a reputable product that meets the customers needs. By investing in science, technology, engineering, and physics the USA can lead this developing market for renewable energy products. While our political leaders debate the existence of climate change, the rest of the world has gotten busy developing products to meet this challenge. In a globalized market, the spoils are going to go to the leader in any given industry. Each firm has a duty to make a product better, cheaper, or leave the marketplace if they can not do this. If not, a hungrier competitor will definitely step forward to take your place.

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2 thoughts on “Believe in Competition

  1. Looks like Sharp is seeing the repercussions of this competitiveness. The solar market is hitting hard times world wide because of a drop in demand in the european market ( they love their solar power) due to the recession and Sharp is closing their USA and European panel manufacturing plants and combining multiple Japanese assembly plants. China may not have been playing “fair” with their solar exports but you still need to compete with who is on the field. It’s the company that makes the efficiency breakthrough that makes their panel a true winner. May the best nerds win. 🙂

  2. yes, and that goes right back to the subsidy issue. The subsidies must promote cost reductions or efficiency gains. Plain and simple. Otherwise they technology will simply not compete in the market. If this policy is pursued in the right way it could result in the cost of renewable energy meeting or being less than that of the cheap natural gas that currently exists. And because the imput cost of the energy (wind is still free), the benefits only get greater they longer the RE system is in use.

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