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  • Essay / Antitrust Policy Intervention in the Solar Energy Industry

    The electricity industry in the United States has become indispensable to the lives of many Americans and the many industries that depend on it. With public debate intensifying among scientists and politicians regarding the effects of global warming, generating electricity through sustainable means has fueled the renewable energy sector, which has seen meteoric growth rates over the past decade. For example, one of the subsectors of this industry, the solar energy industry, grew by a staggering 76% between 2012 and 2013 and is now an $11.5 billion industry. President Obama has even repeatedly referenced renewable energy as a cornerstone of his policies, and in a 2012 State of the Union address, he promised to "redouble our efforts for a clean energy industry." clean energy that has never been so promising. (Appendix 1) Despite the fact that the renewable energy sector is remarkably large (solar, wind, water and other sources), their combined power generation market shares are hardly decreasing at 13.2% in 2012 (Energy Information Administration, 2013). This includes the production, transmission, distribution and marketing of electrical energy produced from renewable sources. We will define the scope of our discussions to those relating to the United States of America (USA). This article seeks to describe how antitrust policy interventions affect the market structure, corporate conduct, and social performance of the electric power generation sector in the United States of America. The United States government has long encouraged competition in the solar energy sector, although such policies have historically been linked to the "other" renewable energy sources mentioned above. The U.S. solar industry was, in the 1980s and 1990s, stagnant... middle of paper ......e providing energy through sustainable means. The idea is to stimulate additional demand for renewable energy. Otherwise, renewable energy prices follow conventional price scales. Rates are generally high enough to “enable the business to operate successfully, maintain its financial integrity, attract capital, and compensate its investors for the risks assumed…” (Appendix 5). In conclusion, the United States of America electric power generation sector has improved a lot due to various antitrust policy interventions that affect its market structure, behavior and social performance. Nevertheless, there is a lot of work to be done given the huge lead that conventional electricity generators have accumulated over the years. A cleaner, sustainable future is indeed the future we can achieve if we strive for it..