The Economic Competitiveness of Renewable Energy: Pathways to 100% Global Coverage

Chapter 5

PV Market Development

5.1 Strategic and Consumer Goods in Society and Why Strategic Ones Need Initial Support

Before we start explaining and understanding the growth of the PV or other renewables sectors, we first have to ask why market support programs should be introduced for technologies which have a much higher cost at their start – like electricity from PV or other renewables – when the same product can be produced much more cheaply with conventional technologies – like gas, coal and nuclear powered plants. The product kWh is no different depending on which power generating system was used. So, why then should politicians facilitate support programs that society has to pay for?

5.1.1 Consumer and Strategic Goods – a Message to Economists

We must differentiate between two distinct products within a society. I like to call them “consumer goods” and “strategic goods”. Figure 5.1 gives some examples for each category. It is obvious to me that the consumer goods should not be used to influence the respective production industry with industry-political actions – although I know that in many cases this is unfortunately happening. Since people simply want the new car, the new mobile phone, the new house and many other consumer goods, we should have a level playing field for the global industry to create efficient competition for the benefit of the customers. Free trade, no state interference and a worldwide contest is the right way to go, and here I am in agreement with ...