Club Med beckons for Solaria Energia . . .

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By and large, the perfect combination of circumstances for the optimal deployment of solar photovoltaics are;

1) a high number of daily sunlight hours (i.e. cloudless) throughout an average year (Middle East, most of the Mediterranean, Africa, Far East, some parts of North and Central America etc. - not North West Europe)
2) a high degree of solar radiation as measured by watts per square metre (ditto)
3) a pretty wealthy pool of potential consumers with green and / or energy security concerns close to heart (like Germany and Israel - typically an average of $25,000 per head GDP and up)
4) a generous subsidy in one form or another (Germany über alles!)
5) an unreliable national grid (Iraq, Italy, California)
6) expensive retail consumer prices for conventional or nuclear power which quickly prices in solar (Japan, California)
7) a lack of domestic competitive alternatives - conventional or nuclear or large hydro (increasingly, Italy)

Of course, there has been no perfectly rational distribution of solar power to date. But news that Spain's Solaria Energia is eyeing up expansion into fellow Mediterranean nations, Greece and Italy merits some strategic analysis. As the article in Forbes say;

Solaria has targeted those two markets because of its demand boom for solar machinery and favourable solar electricity production legislation.

If one accepts that solar prices are going to fall at least a couple of dollars per installed watt over the next decade then there will indeed be a real boom. I suspect though it won't be where it has been happening to date, Germany and California. Italy, has to be a candidate, because it will probably not get its act together and build a few more desperately needed power stations and continue to rely even more on imported power. Greece, meanwhile is booming and can't quite keep up with demand. They nonetheless are already long-time converts to flat-plate solar thermal collectors. Strategically, I'd say it makes good sense for Solaria to look at these two countries and I daresay the rest of the solar industry will do so too over the next decade.

My final point is that it is Interesting that they intend to bypass France en route to Italy and Greece. Solar PV is practically non-existant in France, in spite of some ideal climate in the South-West of the country.

That's because, as one must never forget, legislation and the subsidies that go with it, still trumps everything else in the solar business, every time.

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