The Revolution Will Be Solarized

Solar power has been the Next Big Thing for decades now, yet it remains a niche player in the energy world. The problem of intermittency is unsolved, up-front capital costs remain high, and surging demand for polysilicon, a key component of solar panels, has recently outstripped supply, stifling production.

So when someone claims that within decades solar photovoltaic technology will come to dominate the world's energy portfolio -- with or without subsidies, with or without rising fossil-fuel prices, with or without new environmental legislation -- one could be forgiven a degree of skepticism.

But Travis Bradford is no hippie idealist. The author of Solar Revolution: The Economic Transformation of the Global Energy Industry spent the early years of his career in corporate acquisitions and private equity funds -- not fields that reward irrational exuberance. His book is based on research and analyses done at his Massachusetts think tank, the Prometheus Institute for Sustainable Development, working from what he claims are conservative assumptions about market and capital trends.

Those trends, he says, are inexorable: Just as revolutions have transformed the information and communication sectors, solar power will break the hold of sclerotic, centralized power companies.

Roberts: Your book's central claim is pretty bold.

Bradford: Thanks for recognizing that.

It's not just that we're moving toward alternatives, it's that we're moving toward distributed [power generation] as well. If both of those are true, solar is the only viable option.

Solar is different from other energy technologies in that it delivers energy at the point of use, directly to the end user. That allows it to circumvent the entire supply chain. It's not another option for a utility, it's a competitor to a utility -- the first time utilities have really had a competitor.

The best way to describe it is with an anecdote about cell phones. We used to have these monopoly telephone infrastructure players. They controlled everything, and they had all the processing power at central switching stations. You had these dummy terminals that you just picked up; you had a connection, but no brains. All the brains were in the center of the network. And then these cell-phone producers came along and, in the Telecommunications Act of '96, were given access to the telephone grid. They began to go completely around the supply chain and offer competing services to the same customers, wireless and easier. The telephone utilities ... first they ignored it, then they tried to fight it legislatively, and when they lost that they tried to fight it economically. Eventually they just decided, screw it, we're going to buy them. Today those are the most profitable parts of their business. That's the transformation.

This also happened in computers. We went from large, centralized mainframes with dummy terminals to a distributed hybrid architecture.

Solar is slowly going to begin to unwind the existing utility economics, to the point where utilities decide they have to get in or they risk losing their core business -- exactly the transformations we've lived through in the last 20 years.

The solar revolution does not require new breakthroughs in technology. You could do it with the technology we have, scaling it up and learning how to do it incrementally better every year -- which is what naturally happens with scale.

Roberts: Solar is mainly used for electricity, which represents just over a third of energy use. How do you account for transportation fuels?

Bradford: We'll never solve the problem of transportation until we reconnect the transportation and electricity infrastructures. There's not enough liquid fuels.

I'm not a big fan of biofuels -- on close examination their environmental impact is wretched. What it does is export part of our energy price for transportation through the grocery store, right? We end up subsidizing the cost of our transportation infrastructure in the price of food stocks. Biofuels will solve some problems, but at the end of the day there's not enough land in the entire Mississippi River Valley to meet our transportation needs. And then where would we get food from? There's cellulosic, but that's only another 10 percent.