Falling oil prices would not slow down solar industry growth in short-term: First Solar chief
KULIM: The dramatic crude oil price plunge would not slow down the growth of the solar industry in the short term despite the current excess of capacity in the global market, according to an industry player.
However, James Hughes the chief executive officer of First Solar Inc, the leading global provider of comprehensive photovoltaic energy (PV), said the industry remains cautious on the long-term impact of the crude price to the energy sector.
“It is a complicated situation as it will depend on how long is the crude price plunge trend will last, how correlated natural gas prices are in the global basis based on the changes of the crude price plunge and the what policy actually governments take,” he said.
He pointed out that one of the challenges is that there are significant subsidies for the oil based liquid fuel and subsidies for the generation of electricity from thermal generation.