Surviving a Global Financial Crisis
Today's story is one of unprecedented expansion for the sector. It is still too soon to say exactly how the financial crisis might influence that story, and if current growth projections will fall victim to a Truman-style Paley report future. But notably, when the crucial clean energy tax credits finally passed in Congress, they were attached to the Emergency Economic Stabilization Act of 2008 - what has become known in common parlance as the bailout or recovery bill, a US 700 billion infusion into the financial sector.
In 2008, Germany, Spain and other European countries led the expansion of global demand for PV, and related businesses attracted significantly more investment than in 2007. With the emergence of the global financial crisis in September 2008, the sector has predictably been affected but, despite the downturn and several years of stagnation, Japan's PV market is expected to surge in 2009 with the announcement of the 'Fukuda Vision.'
Yet another example of a shortage-related economic crisis occurred in 2003, when a massive electrical blackout in North America in August resulted in 6 billion in financial losses. Other factors can also bring on increased energy costs and lead to economic problems. In 2003, for example, crude oil prices in the United States rose to a 29-month high as a result of a cold winter and a strike by Venezuelan oil workers at the end of the previous year. In February 2003 the price of oil was 49 a barrel, almost double the previous February's price. This situation was compounded by a pending war with Iraq in March 2003, after Iraq's president, Saddam Hussein, failed to cooperate with weapons inspections supervised by the United Nations
Community of public power companies, private power producers, and industrial companies was setting the pace for establishing a power sector based on fossil fuels. On the other hand, Thai society was badly affected by an economic crisis, unemployment, and the degradation of natural habitats. The political system was facing the difficult task of regulating the energy sector to meet the social and economic objectives of Thailand in the most efficient way. Politicians and stakeholders who wanted to establish a rational basis for decision making needed to continuously examine whether the situation and development were rational and, if not, whether alternatives existed that could accommodate the societal and economic targets more effectively.
Recent economic crisis, its operation stopped. Its use is being promoted again. Generally, the use of renewable energy in the country cannot compete commercially with conventional energy because of its high cost. Indonesia has already initiated activities in energy conservation by conducting training, education campaigns, and research. With the country's natural reserves, the opportunity for renewable energy is significant. However, there are barriers to successful implementation and these include lack of policy, finances, technology, and awareness. A development strategy to address the barriers, which aims to formulate policies and identify financing schemes to increase research and development in the energy sector, has been designed. The PREGA project is anticipated to assist in the implementation of Indonesia's energy projects.
But like the entrepreneurs, the Bank learned how to support solar diffusion. In fact a lot of what it learned came from the entrepreneurs themselves. When the World Bank started off in India, it had little success spurring solar diffusion in rural areas. But those involved learned the lessons from this project and then applied them to Indonesia. And although the project faltered in Indonesia due to the Asian economic crisis, it served as a template for Sri Lanka, where diffusion took off.
Apart from a rather uninteresting rotary mechanical effect applied directly to turbine propulsion, which can result in the immediate or subsequent appearance of the cavitating current (this can also attack or demolish the banks in the vicinity of the discharge from such turbines), today's turbines also rapidly discharge the groundwater. In short, the intensity of their power constantly increases, thus provoking an almost unstoppable economic collapse.
The 8th National Development Plan was influenced by an economic crisis in Thailand in 1997 and was considered to be a turning point in the way it recognized the globalization process and the need for a continuous and long-range process of planning, decision making, implementation, monitoring, and evaluation. The plan was said to be moving toward holistic, people-centered development. The social and economic objectives formulated in the plan were intended to form the basis for planning and decision making in all economic sectors and thus issues including economic policy, security of supply, employment, rural development, technological innovation, the environment, and others. Energy plans and projects were also to be assessed on this basis.
They feel it is coming within the next year or two. In Indonesia, before the economic crisis of the late 1990s, sales of solar were strong. But they would nonetheless dry up in areas where PLN (the electricity utility), with the blessings of the Government, dropped poles by the side of the road prior to elections to raise expectations of the grid's imminent arrival. On the other hand, in other countries some analysts also found that rural households were starting to wise up. In Sri Lanka, for instance, households were said to have come to the realization, after years of failed promises, 'that the grid will not reach them in the short term and PV will meet their immediate needs'.4
This tragic aberration was inaugurated by the foolish belief that the progress of evolution comes to a halt when the life-functions are apparently extinguished and that the so-called soul escapes after the cessation of vital activity. In reality the true resurrection only begins after the proper decomposition of an atom lattice (fatty-matter concentrate) that has fallen back into the earth with the aid of and because of the cycloid-space-curve motion of the Earth itself, which provides the radial- axial im-pulse. In contrast, all 'technical' machines, i.e. all dynamos, turbines, pressure pumps, propellers, explosion and steam driven engines, all furnaces, gas and electric heating appliances, all soil-tilling and harvesting machinery, etc. provide a developmentally harmful ex-pulse to initiate motion. Because of this and without exception, the atom lattice thus moved ruptures, resulting in the disintegration of the molecular (bacteriophagous) formations in suspension. In unnaturally...
Were I to make the naturalesque system of mass motion known prematurely and with it a naturalesque and economic (development-enhancing) modus operandi, then the first to get hold of this implosion principle would be those who have no interest whatsoever in any improved social conditions. They would either be held to total ridicule for their hitherto contrary practices, or they would be recognised by their victims as those to blame for this complete economic collapse and therefore punished. In such case, precautionary measures would be taken to ensure that my discovery once again disappeared without trace.
As we saw, when the World Bank entered the solar sector, it had very little prior knowledge it could draw on. Like the profiled entrepreneurs, it was a question of learning by doing. This, however, it did to quite some effect learning the lessons in India, it developed a strong project in Indonesia that, although thwarted by the Asian economic crisis, was replicated in Sri Lanka. Here it took hold and led to the diffusion of 125,000 solar systems by mid 2008 (representing 7 per cent of unelectrified households). Then the World Bank replicated again in Bangladesh (211,000 systems by mid 2008) and China (500,000 systems by mid 2008). It is an impressive track record, and shows the potential for the World Bank to take the lead in helping emerging markets transition to a new, renewable energy infrastructure.
However, the government didn't mention that the world price of coal had soared in recent months due to the rapidly growing demand after the end of the global financial crisis in 2011. Although in the past few years a small hydro project and more large-scale wind farms had been constructed (in spite of continuing objections by the local people), existing and new coal-fired power stations remained the dominant source of electricity. With the local natural gas fields nearing depletion, an LNG terminal was under-construction on the coast 300 kms to the south, but the demand for imported LNG was so high around the world that there was now concern that supplies would not always be secure. In addition, a recent explosion of an LNG tanker had led to other public concerns. These risks had constrained the planned expansion of the LNG network in several cities and led to the national electricity demand increasing even faster than anticipated, now reaching over 4 per year.
Cordingly development of modern technology appeared after the turn of the twentieth century (Sahin 2004). In recent decades the significance of wind energy has originated from its friendly behavior to the environment so far as air pollution is concerned, although there is, to some extent, noise and appearance pollution from the modern wind farms. Due to its cleanness, wind power is sought wherever possible for conversion to electricity with the hope that the air pollution as a result of fossil fuel burning will be reduced (Clark 1988). In some parts of the USA, up to 20 of electrical power is generated from wind energy. After the economic crisis of 1973 its importance increased due to economic factors and today there are wind farms in many western European countries (Anderson 1992 EWEA 1991 Troen and Peterson 1989).
The current transmission grid is simply incapable of handling the potential amount of clean renewable energy that can be produced. This nation's imperative must be to change and expand its transmission capabilities so that we can provide that clean energy. But if we are to galvanize this change, we must adjust our collective mindset. Just as the American public has rallied around utilization of untapped gas and oil reserves, we must now recognize that the wind is a vast, untapped clean energy reserve. Once we embrace that idea, our leaders will understand the urgency of expanding our transmission system. In a time of economic crisis and insecurity, this initiative can provide jobs to the American people who so desperately need them and energy independence from foreign suppliers of oil.
While each speaker had a unique perspective regarding the solar industry, all agreed that solar seems to be the bright spot in the economic crisis. With the passage of the federal ITC extensions, Rhone Resch, president of Solar Energy Industries Association (SEIA), pointed out that the solar industry is predicted to receive 320 billion of new economic investment and provide 440,000 new jobs.
But without sufficient capital, his business was always on a knife-edge. The more he sold, the more his consumer finance scheme depleted his capital reserves. He was able to find temporary relief with long-term supplier credits, but in the end, when the Asian economic crisis hit at the end of 1997, his business was too fragile, and it folded. The entrepreneur's legacy, however, endured. Largely based on his example, the World Bank developed a new approach to supporting solar. It first developed this approach in Indonesia, where it had a limited impact due to the onset of the economic crisis. It then replicated the approach in Sri Lanka to much greater effect. Although the project in Indonesia was to be derailed by the Asian economic crisis, the template was successful in Sri Lanka (125,000 systems installed by mid 2008). The World Bank would then take this model and
Invented in the period 1967-1969 by Mr Robert Adams of New Zealand, for a variety of reasons the technology did not win immediate acceptance, not least of which was that the New Zealand government and the Lucas corporation, for various reasons, allegedly directly suppressed it, followed by a typically botched and incompetent CIA assassination attempt. That this direct suppression could happen during a period of global economic crisis triggered by the 1970s oil shock, is simply astonishing, and with hindsight, outright scandalous. As for the academics, they ignored it, and simply told Mr Adams free energy was impossible and 'against all the laws of physics'. Academics like to put theory before experiment - it is their way. Frustrated in 1992 Mr Adams published his technology in Nexus Magazine, putting for the very first time, a working free energy device into the public domain. However, sadly, the continued lack of interest in free energy solutions from the general public, government,...
Financial End Game
How to profit from the global crisis and make big bucks big time! The current global financial crisis has its roots embedded in the collapse of the subprime markets in the United States. As at October 2007 there was an estimated loss on the subprime market of approximately 250 billion. If you want to come out on top, you have come to the right place.