CapelDodger
Penultimate Amazing
Unfortunately, that advantage is decreasing. For example, PV producers in Germany face a rather rapid decline in business, since China is now producing the panels much cheaper. By 2011, German manufacturers' global market share went down to 21% from 50%. With the accelerated degression in feed-in tariffs for PV electricity, many people in Germany lost interest in installing new panels. At least one of the German manufacturers is in rather bad shape now (I think it was either First-Solar who recently had to close a fab, but i'm not sure, have to look it up again). The BMWi made a report in 2012 about the situation, you can find it here (but it's in German, so be aware...)
No offence meant, but this I regard as short-term thinking. Think twenty years ahead and you just know there are going to be major German players in the global PV industry. They are either out there now or they'll be formed by people who are out there now (perhaps between jobs today, but the talented ones will be wiser. You're not really in business until you've been through at least one bankrupty).
In 2008, German PV panel/module manufacturers had about 60% market share in Germany, by the first half of 2011 it went down to 15%.
A good old-fashioned tariff war looks on the cards, with GATT going the way of the Geneva Convention on Torture. These are great days to be a diplomat with an Economics Doctorate.
Manufacturer of Wind energy systems are still a bit better of currently, but that can change as well, especially if China decides to decrease Neodym exports even more.
If you're not being held to ransom over Russian gas or Middle East oil it's something else. What's the equivalent for PV?
Another effect is that the way EE's are subsidized currently, the cost for electricity is going up and up, which causes more and more companies to relocate production into other countries.
They relocate for cheap labour and cheaper regulators, not because of electricity prices.
The government tries to counter that, for example by allowing that fees for grid usage have to be paid only by private customers, but not by commercial customers, or that the "EEG-Umlage" (a fee that people pay per kWh that goes directly into subsidizing EE) has to be paid only by private customers and not commercial ones.
Which is kind of crazy, considering that commercial customers impose a far bigger load on the grid than private ones, and that, for example, companies who profit heavily from the EEG are themselves exempt to pay their share (however, that EEG exemption applies to all commercial/industrial customers).
I don't doubt your grasp of the current detail, but I think you're missing the big picture.
Plus the general (i guess worldwide trend) to relocate production into low-income countries anyways, to make the shareholders happy...
Well, quite. German industry has the advantage of an educated workforce with six or eight generations of experience of factory, clock-driven culture. Something you simply can't teach (as so many German managers dscovered in Turkey back in the day; people would keep drifting off or simply not turning up because it was lambing-time, it drove them crazy. There are Chinese discovering the same thing in Africa right now).
While there was quite a boom with regards to renewables (i mean companies producing that stuff), it is definitely declining now, so it's not that sure at all that we will profit from the switch to renewables commercially (export, etc.).
I'm pretty sure of it myself. Let's revisit this again here in 2022