Prospects for the solar power sector are puzzling investors juggling on one hand a possible dotcom-style bust and on the other fresh support in Europe, home to a third of the world's market.
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Solar companies saw their share prices skyrocket last year but many endured a steep fall in January, halving in the case of one market leader Oslo's Renewable Energy Corporation.
Such falls reflected a view that solar power valuations had run ahead of themselves. High profits plus low barriers to entry have attracted new manufacturers from China and the prospect of more serious over-capacity looms is now dividing opinions.
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Germany, the world's largest solar market, recently revamped its renewable energy law to reduce subsidies from next year.
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Solar panel prices must fall if governments were to continue to back the industry, said Jefferies investment bank analyst Michael McNamara. "Otherwise you're just financing wealth creation. Governments are worried they may have made (premiums) too generous," he said.
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A Reuters poll of four companies showed British installers Solar Century and Dulas charged 7-8 euros per watt compared to 5 euros by two counterparts in Germany, or more than 4000 euros ($5,797) more for a small, household 2 kWp unit.
Keywords: Solar, global
By Gerard Wynn and Eva Kuehnen
FOR FULL STORY GO TO:
http://www.reutersinteractive.com/Carbon/89855
Reuters Interactive Carbon Market Community www.reutersinteractive.com
February 11, 2008
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Environmental Valuation & Cost Benefit News covers legal, academic, and regulatory developments pertaining to the valuation of environmental amenities and disamenities, such as clean air, trees, parks, congestion, and noise. We apprise the reader about ways in which costs and benefits are measured, and the results of empirical studies. We hope that this information will allow public and private organizations to comprehend the risks and benefits of various actions, help disputants to resolve conflicts equitably and efficiently, and improve the quality of public policies. We will only discuss issues related to the empirical quantification of private and social costs and benefits and damages, and summarize information from daily newspapers, academic journals, legal publications, court decisions, professional newsletters commissioned studies, and on-line services. This newsletter is dedicated to the principal that all policies place values upon life, liberty, and the pursuit of happiness. We believe that more information, explicit specification of assumptions, and rigorous analysis can help our society to better meet these ends. This site will increasingly serve, in conjunction with others, as a valuation database. We will include a wide range of studies, including non-environmental reports, because omission of a factor effectively values it at zero, and biases decisions. Heavy traffic has caused several site crashes. We are attempting to correct these problems. Apologies for any inconvenience.
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