The growth is PV Solar and CSP over the past few years is significant in a number of countries, albeit from a low base. However, at the same time, we are seeing iconic companies floundering or going bankrupt such as Solyndra and Sun Edison in the, Abengoa in Spain, and other lesser known names. This poses a question to me: Why are growth in volumes not always translating into higher corporate profits at the firm level?
Your responses are much appreciated. I am looking to have a cross section of views for my book that I am finalizing in the next few weeks. This is a reality check for me.
Hi Ricardo,
Here are some "guesses":
Maybe a mix of all the above ?? What do you think ?????
-Sanjay
Sanjay,
Thanks for your interesting insights. On your point 4, is this a case where the early adopters (assuming the learning curve logic is at work) bears the higher cost of earlier technologies that are experiencing obsolescence when newer and cheaper versions of a similar technology emerge?
I do wonder in your market, or markets that you are aware of, how much of the revenue is accounted for by the sale of power at market prices, and how much come from feed-in tariffs or similar subsidies?
Regards,
Ricardo
Hi Ricardo,
Even though your assessment of my point #4 may be partly correct, I would tend to vote for it !! Yes, I do think that particularly in case of PV technology, players who have been a bit bearish with a wait-n-watch approach have been better survivors than the bullish guys who wanted to jump in with huge R&D investments.
In India, the PV market has been a cautious one, and most revenue is subsidized. Wind and small-hydro have been more liberally accepted - in some parts of the country, wind is invested in by thermal and hydro power companies as well.
I must say it is great having discussions with you !!
-Sanjay
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