Sunita Narain
If you know that a sector has arrived when it makes for trade wars between countries, then solar energy clearly has. Last year, the US imposed anti-dumping duties on Chinese imports of solar panels; now the EU has proposed the same. The Chinese have in turn threatened that they will take action against European exports of poly-silicon, the material used for manufacturing solar panels. In February this year, the US filed a case against India at the World Trade Organization (WTO) for “favouring sourcing of panels from domestic manufacturers”. Earlier this month, Canada lost a similar case filed against it at WTO for its support to domestic manufacturers in procurement of solar panels. So, what you thought was all good and nice has suddenly become the biggest bugbear in international trade relations. It tells you that this sector is growing, it is lucrative and it makes for fierce trade politics and competitiveness.
But this is only part of the story. The big issue underlying these “wars” is the role of solar energy—a new source of power to lead the world to a low-carbon future and thus, away from the looming climate crisis. It has big objectives.
First, it has to become cheap so that it can achieve grid parity and compete with the dinosaur in the market: coal and oil. This can only happen when its deployment is greatly scaled up. Secondly, it has to reinvent green growth. This is why solar energy has been “sold” as an alternative industry, which will add to employment. It is the economy of the future. Thirdly, it has to secure needs of the most energy-poor. In other words, this relatively expensive and certainly most modern energy system should reach the poorest millions living in darkness. This would mean cutting the cost of supply, building networks to distribute and doing all that has not been done before.
Solar energy, therefore, has a tall order to deliver. The problem is countries have never considered the competing and often conflicting objectives. As a result, solar energy instead of becoming the messenger of the new cooperative world is getting embroiled in battles.
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