http://www.economist.com/blogs/schumpeter/2013/03/suntechs-bankruptcy
The Chinese company Suntech, the worlds largest provider of solar power has just declared bankruptcy this week. The company in 2005 was one of the quickest rising companies in the world with its Shi Zhengrong was the wealthiest man in china for a short period of time. But after the subsidies stopped and the economy faded for solar power production the world was left with a glut of solar technology without having a market for it. In the past year as many as 1 in 30 plants had been closed or declared bankruptcy meaning the market for solar energy is slowly fading.
A few weeks ago, I read an article that discussed the shift from investing in green technology, to investing in technologies that would advantage of increasing climate changes. Just goes to show that both the demand (as this article shows) and profitability of greener investments is no longer convincing to investors anymore.
ReplyDeleteThe are plenty of solar power companies here in America as well as many pother technologies focusing on going green and it may bring up the question about what is going to happen to the ones here and what will be done next in place of them.
ReplyDeleteWell this doesn't mean the solar industry is dying. People claimed the internet was going to die a quick death when hundreds and even thousands of internet firms came and went. The solar power and green energy industry is still in its development stage with lots of room for innovation. As our resources such as oil and gas become more scarce, we will come to depend more and more upon solar energy, and that will eventually cause a sharp rise in its development. The technology is only getting better and prices are coming down.
ReplyDeleteThis is surprising that the market for solar energy is fading. The world is becoming so much more attracted to "green" practices because they effectively decrease negative externalities such as pollution that have been increasing the threat of global warming.
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