Your money at sort-of work.
Obama awards $2B for solar power, hails new jobs
WASHINGTON – The government is handing out nearly $2 billion for new solar plants that President Barack Obama says will create thousands of jobs and increase the use of renewable energy sources.
Obama announced the initiative in his weekly radio and online address Saturday, saying the money is part of his plan to bring new industries to the U.S.
The thing that immediately leaps to the front of one’s mind- if this is such a great investment, why is the government investing as opposed to private capital investing in it?
$2 billion is going to two companies:
The two companies that will receive the money from the president’s $862 billion economic stimulus are Abengoa Solar, which will build one of the world’s largest solar plants in Arizona, creating 1,600 construction jobs; and Abound Solar Manufacturing, which is building plants in Colorado and Indiana. The Obama administration says those projects will create more than 2,000 construction jobs and 1,500 permanent jobs.
So out of that $2 billion, only 1500 permanent jobs are being created.
Maybe. Maybe not so permanent.
The problem is, before the industry enjoys the fruits of that growth, it’s going to have to suffer.
Sullivan sees a period of significant over-capacity ahead, and expects to see :”violent changes” in the industry, with “widespread company failures throughout the value chain.” He contends that the “continuing glut threatens low-quality and high-cost players alike,” and particularly singles out Evergreen Solar (ESLR) and the Uni-Solar brand from Energy Conversion Devices (ENER) as companies at risk, due to “high operating costs and insufficient scale.”
They may well be right:
Fremont solar company’s IPO cancellation seen by some as red flag for industry
The withdrawal of Solyndra Inc.’s initial public offering might be due to the Fremont company’s pool of red ink and shaky financial markets — but the IPO cancellation nevertheless darkens the outlook for solar energy, some analysts said Monday.
The maker of solar cylinders — whose fortunes sparkled with high-profile visits to its Fremont operations from President Barack Obama and Gov. Arnold Schwarzenegger — was tarnished at the end of last week by its decision to scuttle a first-time sale of its stock to the public.
Hmm.
A stream of financial losses at Solyndra is among the visible woes for the manufacturer of cylindrical tubes that collect the sun’s rays.
During 2009, Solyndra lost $172.5 million, significantly smaller than its 2008 loss of $242.5 million.
“Solyndra’s problems didn’t cause the solar industry to have a problem, Solyndra is an example of the issues that face the solar industry,” said Aaron Chew, an analyst with Hapoalim Securities USA.
Falling prices are a huge challenge for the solar sector. Manufacturers have become more adroit at making solar systems more cheaply.
Sounds like a perfect time for government to invest.
Then there’s the little talked about problem of retired solar panel toxicity:
E-waste looms behind solar-power boom
“The electronics industry’s lack of environmental planning and oversight resulted in widespread toxic chemical pollution that caused death and injury to workers and people living in nearby communities. The high-tech industry’s legacy now includes the growing global tide of toxic electronic waste, or e-waste,” the report says.
A report from China by The Washington Post brought attention to this solar-waste issue to many people for the first time. A reporter visited a village where toxic silicon tetrachloride, a byproduct of silicon cell manufacturing, was dumped, making the land unsuitable for growing and posing a health risk to residents.
And cadmium and selenium.
The SVTC report outlines materials being used – and the processes involved – in making solar panels and the health problems they could cause. Some of these materials, such as cadmium and selenium, can cause serious health problems if humans are exposed to them in certain concentrations or over a prolonged period of time. Some of the materials haven’t gone though enough tests to show their safety levels, the SVTC said.
Are we trading one set of ecological troubles for another? It’s going to be far cheaper to dispose of these panels in landfills than recycle them. (Note to John Grisham: another book is awaiting your hand)
The manufacturing of solar panels is becoming less and less costly. But if there is money in it there will be international competition for that money. How long will it be before we buy virtually all solar panels from China? How long before Walmart starts to carry them? Then what of these companies? How long before they turn into GM and Chrysler?
DrJohn has been a health care professional for more than 30 years. In addition to clinical practice he has done extensive research and has published widely with over 70 original articles and abstracts in the peer-reviewed literature. DrJohn is well known in his field and has lectured on every continent except for Antarctica. He has been married to the same wonderful lady for over 30 years and has three kids- two sons, both of whom are attorneys and one daughter on her way into the field of education.
DrJohn was brought up with the concept that one can do well if one is prepared to work hard but nothing in life is guaranteed.
Except for liberals being foolish.