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LDK Solar Co., Ltd. Message Board

  • bombloze bombloze Mar 4, 2013 4:54 PM Flag

    PV hits profits margins and sales of central German power generators

    The increase of cheaper photovoltaics on the German wholesale power market is reducing the profits and sales of large central power generators. They are hitting back by "heavily" lobbying against decentralization, according to Renewable Analytics, which has further suggested a restructuring of Germany’s renewable energy levy.

    "Decreasing costs of installing photovoltaic systems in Germany are leading to negative effects on margins and sold electricity volumes of the large central generators," stated the report published by Renewable Analytics LLC, a U.S.-based research and consulting firm specialized in the photovoltaic industry.

    The report, "The effects of photovoltaic electricity generation on the German wholesale power prices," suggests that conventional power generation business models are being threatened by an increase in photovoltaics. This has consequently led the generators to push back by lobbying against decentralized renewable generation.

    PV cuts electricity prices

    As well as suggesting that the conventional, centralized generators are worried by the rise of cheaper, decentralized photovoltaic generators, Renewable Analytics said wholesale electricity costs in Germany were significantly lower. The report said the cost in 2012 was €6.145 billion less than in 2008, and that this was due to increased PV generation.

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    • I love how the article spins lost profits from traditional sources as a negative.

      So what is wrong with this picture in terms of the consumer?
      * Traditional sources finally have a competitor such that they could not raise prices?
      * Less pollution from traditional sources that the public would have to contend with?

      I wish the media would stop treating business as the almighty that has to make a profit and adopt the truth!
      * Consumers spent less on power consumption due to competition saving consumers $$$
      * $$$ that were most likely spent in other positive ways to enrich their lives
      * Jobs and new business in solar were created which I'm sure displaced many from unemployment lines
      * Germany is I believe the only country that was successful in reversing carbon emissions
      * Germany is the only country to have made an impact from prior years in term of reversing climate change
      * German citizens likely had less athesma attacks and business likely gained from that as well

      It would be great if we all could chip in and help these poor businesses out? Perhaps we should pay more for electricity and skip a meal or two a week to do so .

      The point here is the Walmart story all over again. The market "Buys" the comparable product "electricity" at the lowest rate possible. I fail to see carbon generation of power being a long term profitable enterprise as most of the carbon has been mined, drilled, and relocated to the atmosphere. Which reminds me.... that fact makes possible entire new industries to clean that atmosphere, broken pipelines, and fracking chemicals from water supplies. But hey, big business can simply close and leave that mess behind right?

    • Light reading:

      BDEW-Strompreisanalyse Oktober 2012
      Haushalte und Industrie
      Stand: 26.10.2012

      Don't know of an English translation; sorry.