SUN AND GLOBAL TRADE

Global PV Competition Creates Increased International Trade Disputes
Bettina Weiss, November 2010 (SEMI PV Group/The Grid)

"Critical to the healthy growth of the global solar PV market is a global trade system without restrictive barriers between countries…Any barrier that restricts the free trade of goods and services between countries raises overall costs…and decreases the amount fossil fuel displaced through solar…

"…Governments regularly protect economic sectors from international competition and favor various exporting industries through a variety of tax incentives, grants, and other actions. Even under what would be called optimum situations, there are often a number of formal and informal, intentional and unintentional, restrictions…[but] progress to a more bountiful use of solar for all nations means lowering barriers…[Today,] increasing trade frictions are threatening the growth and prosperity of the global PV marketplace…"

Anticipated supply (click to enlarge)

"…China began blocking all shipments of rare earth minerals… Japan initiated a trade dispute with Canada over Ontario’s feed-in tariff…[The U.S. will] investigate China’s aid to its clean-energy producers…In India, under the Jawaharlal Nehru National Solar Mission (JNNSM)…goal for deploying 20GW of solar power by 2022…[mandated] modules [and cells] manufactured in India…

"Further fueling global trade friction is a PV market overwhelmingly characterized by wide imbalances between supply and demand. With over 75% of the world’s demand for solar power, Europe contributes only 25-30% of the global supply…[P]olitical support for effective solar policy is threatened by the policy dialog influenced by these large imbalances of supply and demand…In the background…is the simmering controversy over currency policy. Some economists complain that China is manipulating its currency, keeping domestic demand low while reducing the price of its exports…[P]olitical forces are in motion in both the United States and Europe that may have uncertain and detrimental outcomes to PV suppliers…"

Anticipated demand (click to enlarge)

"…[O]pen and free trade is essential to the healthy development of the solar power industry and critical to the continued replacement of fossil fuels by clean, renewable energy…[T]he SEMI PV Group support of free and open trade can be characterized by the following principles…[1] the solar industry must reduce the world’s dependence on fossil fuels…[via] meaningful and effective public policies…[In Asia,] demand-side policies to encourage the development of local markets…[2] The key technical challenge to the solar economy of the future, therefore, is to reduce the costs associated with PV manufacturing and installation…Global industry standards that reduce costs and enable innovation are an essential component…A global set of environmental health and safety standards and Best Practices are also essential…

"…[3] Policies should be clearly defined, simple to understand and focused on solar power adoption goals…[4] SEMI PV Group support[s] government policies that support manufacturing operations…[and] programs that seek [to] balance PV demand with PV supply…As the solar energy market continues to grow and develop, the SEMI PV Group will advocate policies that maintain free and open trade within the context of these principles…"