Government Protectors and Green ... The Solar Saga

Government knows best. We all know that. In fact, all governments seem to know what's best for their citizens and future energy industries.

We are aware of Solyndra and others here in the U.S. We invested taxpayer money to keep up with the Chinese, as I recall.

Of course, Solyndra failed, so let's check in on the Chinese and see how they're doing now.

China Broadens Solar Dumping Probe has the story:

"Chinese regulators ratcheted up the global fight over the troubled solar-energy industry on Thursday as it launched a probe into the trade practices of European solar raw-materials suppliers.

China's Ministry of Commerce said Thursday that it has launched an investigation into whether European companies are selling polysilicon, used to make solar panels, at unfairly low prices. It will also probe whether the companies received illegal subsidies. . . .

The move is part of the escalating fight between China and its trading partners over the solar power sector this year. The European Union announced in September that it would investigate Chinese imports of solar panels, while Indian companies have lobbied their government to do the same.

The U.S. Commerce Department has already announced provisional anti-subsidy and anti-dumping tariffs on imports of Chinese solar panels and cells. The U.S. tariffs will take effect if the U.S. International Trade Commission determines that Chinese dumping of solar products injured U.S. companies. Its decision is expected this month.

A wave of bankruptcies has hit major solar companies in both the U.S. and Germany over the past year due to an industry-wide decline in prices and economic problems in some key markets. German conglomerate Siemens AG said last month that it planned to pull out of the solar business due to sinking prices and cutbacks in government support for solar-thermal projects.

China's Ministry of Commerce said in separate statements on Thursday that there is enough evidence to move ahead with its own investigation into European imports, which will be combined with existing anti-subsidy and anti-dumping probes of U.S. and South Korean imports launched earlier this year. . . .

The investigation could take up to a year, with a possible extension through the end of April 2014, it said."

SUMMING UP

Excess and unnecessary installed capacity for an essentially non-existent competitive green solar market is now in place in many parts of the world.

Government subsidies and a follow the leader mentality for the government knows best gang encouraged both too much capacity and too much production, resulting in too low prices for too few customers.

Now that prices have collapsed and government subsidies have run out, it is time for countries to try to place the blame on other countries.

Maybe we can blame China for "forcing" us to follow them into this entire mess in the first place. Or maybe they can blame us. The Koreans perhaps? The Germans? The Indians? Others?

But here's another thought. If there's no viable solar market, and there apparently isn't, without government guarantees and subsidies, and if the market pricing is too low for anybody to make a profit, why not just shut the whole thing down for now?

And then let the market develop if, when, and as it may find a customer or customers willing to cause solar to become a viable market based competitive industry without governments picking, protecting and subsidizing the "winners and losers." Because they're all losers now.

At least that's my take.

Thanks. Bob.