Business - - Nov 10,2016
According to Total’s CEO, Patrick Pouyanne, the condition of the solar industry on a global scenario is quite pathetic due to low demand and over-capacity.
The degrading status of the global solar industry was highlighted by Patrick on Thursday. During an energy conference, he targeted the low prices for several fresh projects and diminishing government support in few countries as the main reasons for shaping this crisis.
“Today, the segment is facing a double crisis”, were the words of disappointment by Total’s CEO as he compared the current situation with an identical phase in 2011-2012. The French oil & gas leader has been trying to bring a significant change by enhancing its renewable shares. Total took over SunPower at a price of $1.3 billion which was indeed a strong move to benefit the solar industry.
In China, the government has reduced subsidies to the solar power sector which is in fact hampering the growth. Pouyanne did mention this in his speech which was perceived as a strong proclamation. It was effective and forced the present members to worry about the crisis.
Countries like Russia and Egypt are facing heavy consequences due to their respective governmental policies. Egypt being one of the sunniest regions of the world is facing a currency crunch. This has restricted power developers to invest in new power plants and is seen as the prime obstacle for the solar industry in Egypt. A similar situation exists in Russia where the economic crisis has struck the country very strongly. The value of the national currency has been decreased due to the charged international sanctions.
There needs to be a well-defined order that might work to manage the downfall of solar industry. But looking at the current picture, the path is totally hazy without any guiding light.