Example Of New Solar Panel Silver Demand: Major New Solar Electric Generating Plant To Be Built In Texas...
(lifted from HAL mb)
Fuel Fix reported on Thursday that the San Francisco firm Recurrent Energy just landed a contract that would increase Texas’ capacity by over 50 percent, with a 150 megawatt installation in West Texas. Construction is occurring at the behest of Austin Energy — one of the largest city-owned utilities in the country — and should be completed by 2016. The project will be worth $525 million and will cover 1,000 acres of land.
The San Antonio area has installed 90 megawatts of utility-scale solar and 15 megawatts of direct generation, with another 385 megawatts expected over the next few years, ranking it sixth amongst cities nationwide. Austin itself has 16 megawatts of capacity online, and utilities in both cities have taken up the opportunity to voluntarily begin their own forms of net-metering.
Solar power has boomed in America, mirroring worldwide growth fueled by demand in China. That’s encouraged investment and further drops in prices. Recurrent Chief Executive Arno Harris pointed out to fuel fix that the manufacturing costs of solar panels dropped between 60 and 70 percent in recent years.
“We’re in the third generation for large-scale build outs” of solar technology, Harris said. “We’ve learned a lot about how to be more efficient.”
In fact, as of mid 2013, installation prices for solar power were lower in Texas than anywhere else in the country, and the price is still hovering around a remarkably-low five cents per kilowatt hour.
Just in case you're not being sarcastic, $5/oz silver presents an interesting catch 22 dilemma. It is likely that at $5/oz Worldwide silver production would decline due to some mine closures and unecomomical byproduct electrowinning costs. Let's just be conservative and say that Worldwide silver production could decline by at least 20% if the price of silver declined to $5/oz. Then we would have to deal with potential hoarding which would result from at least a psychological attitude that this highly favorable price might be just very temporary. Then you have the major Bullion Banks which hold silver, which would almost certainly try to support the price of PM's to help mitigate short term carnage to their balance sheets by buying more silver (and removing it from the market) as the price declines. Thirdly, you would almost certainly see China exercise its' likely 'Beijing Put', Warren B. exercise a similar type of 'Buffet Put', OPEC Countries, Russia, as well as speculative hedge funds all pulling physical silver from the market. Finally, at $5/oz silver so many new and even existing uses for silver would open up (including for example silver in lead-acid car batteries to extend their life, other types of silver based batteries, etc.) that the actual availability of silver for solar panel manufacturing could actually decline and be in severe shortage even though the price of silver would seem very economically favorable. Cheers...
Sharp Corp is actually hedged between 18 and 19 through 2016. Either they got it way wrong, or you do. I personally don't see anything near $5 in the cards; a short duration 15-17 on the other hand I believe is possible. GLTY!