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Scheer Solar Economy Renewable Energy for a Sustainable Global Future (Earthscan, 2005)

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THE SOLAR ECONOMY

Renewable Energy for

a Sustainable Global Future

Hermann Scheer

London Sterling, VA

First published in English by Earthscan in the UK and USA in hardback in 2002 and in paperback in 2004

Reprinted 2005

Original title: Solare Weltwirtschaft

Copyright © Verlag Antje Kunstmann GmbH, München, 1999

Translated from the German by Andrew Ketley

All rights reserved

ISBN: 1-84407-075-1

Typesetting by MapSet Ltd, Gateshead, UK

Printed and bound in the UK by Creative Print and Design Wales, Ebbw Vale

Cover design by Andrew Corbett

For a full list of publications please contact:

Earthscan

8–12 Camden High Street, London, NW1 0JH, UK Tel: +44 (0)20 7387 8558

Fax: +44 (0)20 7387 8998 Email: earthinfo@earthscan.co.uk Web: www.earthscan.co.uk

22883 Quicksilver Drive, Sterling, VA 20166-2012, USA

Earthscan publishes in association with WWF-UK and the International Institute for Environment and Development

A catalogue record for this book is available from the British Library

Library of Congress Cataloging-in-Publication Data

Scheer, Hermann, 1944-.

[Solare Weltwirtschaft. English]

The solar economy : renewable energy for a sustainable global future / Hermann Scheer.

p. cm.

Includes bibliographical references and index. ISBN 1-85383-835-7

1. Renewable energy sources. 2. Sustainable development. I. Title.

TJ808 .S33 2002 333.79'4—dc21

2002006934

This book is printed on elemental-chlorine-free paper

Contents

List of figures and tables

vii

Foreword

 

ix

Acknowledgements

xviii

List of acronyms and abbreviations

xix

Scenario

From fossil fuels to solar power:

 

 

transforming the global economy

1

 

The power of the pyromaniacs

5

 

Fossil resource dependency: how economic

 

 

processes have come adrift from their

 

 

environmental and social bases

10

 

Global competition in place of global

 

 

environmental policy

12

 

The origins of the fossil-fuel economy

14

 

Accelerating change and global displacement

15

 

Business unbound: cutting loose from nature

 

 

and society

19

 

Reconnecting business and society through

 

 

solar resources

21

 

From the political to the economic solar

 

 

manifesto

25

 

PART I

 

 

CAPTIVITY OR LIBERATION: FOSSIL FUEL AND

 

 

SOLAR SUPPLY CHAINS COMPARED

 

Chapter 1 Ensnared by fossil supply chains

37

 

Long supply chains due to limited resources:

 

 

the logic of globalization

37

 

Fossil resource supply chains and industrial

 

 

concentration: market destruction through

 

 

market mechanisms

44

iv THE SOLAR ECONOMY

 

The spider in the web: the growing influence

 

of Big Energy and Big Mining

49

The convergence of power: networking,

 

supercartels and the disempowerment of

 

democratic institutions

56

Chapter 2 Exploiting solar resources: the new political

 

and economic freedom

62

The solar supply chain

66

The economic logic of the solar energy

 

supply chain

76

Solar power: technology without technocracy

82

PART II

 

THE PATHOLOGICAL POLITICS OF FOSSIL

 

RESOURCES

 

Chapter 3 The 21st century writing on the wall: the

 

political cost of fuel and resource conflict

93

A world in denial: the disregard for limited

 

reserves

94

Dwindling reserves versus worldwide growth

 

in demand

103

Arming for the resource conflict

105

Resource reserves, gunboat diplomacy and

 

the moral bankruptcy of society

115

Chapter 4 The distorting effects of fossil supply

 

chains

120

The rise and fall of the fossil city

121

The fossil resource trap closes on the

 

developing world

128

Chapter 5 The mythology of fossil energy

137

Figures of fancy: the inadequacy of

 

conventional energy statistics

139

The inadequacy of energy forecasts

143

The profligate subsidies for conventional

 

energy systems

149

CONTENTS v

The feigned productivity of nuclear and

 

fossil energy

153

Ideology and the physics of energy

159

The fear of the small scale

166

PART III

 

THROWING OFF THE FOSSIL SUPPLY CHAINS

 

Chapter 6 Energy beyond the grid

173

Wireless power: the potential of solar

 

stand-alone and stand-by technologies

174

The potential for natural and technological

 

solar energy storage

182

Synergistic applications, cross-substitution

 

and all-load micro-power plants

195

The solar technology revolution and the

 

solar information society

201

Chapter 7 The untapped wealth of solar resources

206

The higher productivity of biological

 

materials

209

Replacing fossil with solar resources

218

Solar materials: from agricultural

 

monocultures to polycultures

220

The real biotechnology: materials science,

 

not genetic engineering

225

Chapter 8 The profitability of renewable energy and

 

resources

231

Whose costs? Why solar and fossil resources

 

cannot be compared on the basis of

 

economic efficiency calculations

233

Cost avoidance: economical application of

 

solar resources in a nutshell

237

vi THE SOLAR ECONOMY

PART IV

TOWARDS A SOLAR ECONOMY

Chapter 9 Exploiting solar energy

251

The role of capital allowances – and their

 

problems

253

Tax-exempt status for solar resources:

 

overcoming the legitimacy crisis of

 

environmental taxation

256

Possibilities and problems in the market for

 

green electricity

259

Green suppliers and municipal

 

self-sufficiency

269

Creative destruction in the energy industry

 

and the transformation of the resource

 

industry

276

Hard roads to soft resources

280

Chapter 10 Regionalization of the global economy

 

through solar resources

285

Regionalization effects through solar

 

resources

288

‘Own implementation’ versus ‘joint

 

implementation’: opportunities for the

 

developing world

292

Regionalizing trade flows

296

The sustainable economy: global technology

 

markets, regional commodity markets

301

Trade not talk: beyond the energy industry

308

Chapter 11 The visible hand of the sun: blueprint for a

 

solar world

312

Forwards: towards the primary economy

316

Work and the solar economy

320

From the bounty of the sun to global

 

economic prosperity

323

References

326

Index

341

List of figures and tables

 

Figures

 

2.1

Comparison of electricity generation from fossil

 

 

fuels and renewables

79

2.2

Internal processing steps involved in solar and

 

 

fossil fuel/nuclear electricity generation

81

3.1

Estimated duration of crude oil and natural gas

 

 

reserves

105

7.1

The ‘petrochemical snake’

212

7.2

Comparison of solar and petrochemical resources

213

7.3

The range of applications of a solar raw material

222

9.1

Energy supply structures incorporating renewable

 

 

energy

274

9.2Model for the future: municipally/regionally integrated energy supply incorporating renewable

 

energy

275

 

Tables

 

1.1

Geographical concentration of mineral reserves

43

2.1

Characteristics of solar resources

68

2.2

Can industrial concentration and monopoly

 

 

structures be avoided?

88

3.1

Mineral reserves

102

3.2

Growths rates for fossil energy use in Asia, in

 

 

millions of tonnes

112

4.1

Energy imports as a percentage of export revenue,

 

 

selected developing countries

134

6.1

Stand-by power consumption and equivalent PV

 

 

panel area

180

6.2

Energy storage technologies

193

viii

THE SOLAR ECONOMY

 

6.3

Energy regulation strategies in biological systems,

 

 

compared with existing and potential architectural

 

 

applications (selected examples)

198

7.1

Comparison of market prices for fossil and

 

 

regenerable resources

214

7.2

Comparative evaluation of products manufactured

 

 

from fossil and solar raw materials

216

10.1 Regional distribution of economic activity:

 

 

renewable and non-renewable resources compared

290

F O R E W O R D

Preventing climate change: beyond the Kyoto Protocol

‘LETS IMPROVE THE atmosphere’ – that was how the German government greeted delegates to the conference on climate change held in Bonn in July 2001, the eighth such conference since 1992. Yet even before the conference took place, it was abundantly clear that even if the Kyoto Protocol were to be implemented in full through to 2012 without being watered down, the most it could achieve would be to bring emissions back down to the already dangerously high levels of 1990. On the basis of existing agreements, the objective was no longer to improve matters, but merely to prevent them getting any worse.

Matters have not been improved by either the discussions in Bonn or the follow-up conference three months later in Marrakech, held to hammer out further details on how the Kyoto Protocol is to be implemented. If implementation were to proceed as planned, the result would be a paltry 2 per cent emissions reduction in those industrialized countries that have signed up. The USA, responsible for 25 per cent of global emissions, would not be taking part. Across the globe, however, total emissions would continue to rise by a further 10 per cent. The gulf between the targets that must be met and the measures that have been agreed is vast. The UN-endorsed Intergovernmental Panel on Climate Change (IPCC) has stated that emissions reductions of 60 per cent by 2050 are vital if the global climate is to be stabilized. There is surely no-one who seriously imagines this can be achieved by prolonging the Kyoto process beyond 2012. The Kyoto debate would appear to have run its course.

x THE SOLAR ECONOMY

In reality, it is now time to open up the debate. When reporting to the public, politicians face understandable pressure to present even minimal results as a success. The truth is, however, that holding international conferences has proved to be an inadequate response to the dangers and challenges that climate change presents. Despite the general consensus that we have to stick to the path originally chosen, it is now past time we asked whether these conferences have not in fact done more harm than good. While the delegates have been debating over the past decade, emissions have been rising by an unprecedented 30 per cent. We can no longer afford to measure the success of climate change conferences in terms of agreements reached. In view of the consensus assumption that such conferences represent the international instrument par excellence for tackling climate change, it is fair to ask how much has been neglected, postponed, cut, omitted or mishandled since they began. The roll-call of failure is so long that it would be irresponsible not to look for a better way forwards. ‘Let’s improve the policy’ should be the new leitmotiv.

At first glance, the case for global climate change conferences appears convincing. Global problems need global – and thus consensual – solutions. All governments must recognize that they have a direct responsibility to tackle climate change, and their commitments must be binding. The right way to achieve such an outcome is to hold global negotiations to decide on a joint programme of action on which no-one can renege. The apparently common-sense nature of this approach, however, is blinding us to basic questions – questions which the now parlous state of the Kyoto Protocol imbues with new urgency. Why should we expect comprehensive, fast and effective policy responses to emerge from what is the most long-winded political decision process imaginable, namely consensus-orientated negotiations between the parties to an international treaty? What were the reasons for the success or failure of other international treaty negotiations? But above all, is it even possible to achieve international agreement on the technological and structural transformation of the energy sector that a successful climate change strategy would require?

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