The rise to power of the new sun kings  

The SMH has a look at a couple of the key figures in the solar industry - The rise to power of the new sun kings.

As proponents of green energy go, Samuel Yang and Ben Waters could hardly be less alike. Samuel Yang, dubbed by the Chinese media the ''godfather of solar energy'', is a Buddhist vegan who befriended solar scientists while studying economics at Macquarie University in Sydney. He returned to China to found four of the largest solar photovoltaic companies in the world.

Ben Waters, director of Australia's sustainable business strategy for General Electric, sings in church choirs and, as a Hobart schoolboy, brooked bullying by opposing the Franklin River dam. He arrived at the giant corporation after years maintaining F/A-18 fighter jets.

GE's Ben Waters believes the Coalition might not scrap carbon tax. Photo: James Alcock Both Yang and Waters, though, share similar visions for the future of energy: the shift from large-scale, fossil-fuel power plants has to happen if we are to limit global warming, and the pace of the transition will surprise even supporters.

Of the two, Yang is arguably more of a revolutionary. As chief executive of Shanghai-listed Hareon Solar Technology, Yang is in the midst of a battle for survival in an industry that has soared about 50 per cent annually since 2002. Two of Yang's start-ups, JA Solar and Suntech, are among Chinese companies flooding global markets with low-cost solar PV. Suntech is also fending off creditors. ''This overcapacity is normal for any new industrial technology,'' Yang says on a visit to Melbourne this week. ''Solar technology is always advancing fast … and some companies will drop out.''

PV prices in Australia are now below 90¢ per watt, down as much as two-thirds in a couple of years. About one in eight Australian homes now have solar panels, and Yang says penetration rates could rise to 80 per cent in coming years given Australia's high electricity prices, ''such wonderful sun'', and the likely arrival of even cheaper solar PV and later low-cost batteries.

Yang won't say how much further prices will fall but any pause in the decline is likely to be temporary. Even the threat of European tariffs for alleged dumping is dismissed. ''It's a silly childish game,'' Yang says. ''I believe it won't last long.'' Yang bets European leaders will be wary of sparking a trade war with the growing Chinese market and losing jobs linked to the spread of cheap Chinese products. Yang's focus, though, is to expand his company into energy production itself. ''We have to invest in solar farms,'' he says. ''We should become energy suppliers.''

US industrial conglomerate GE, about 125 years old and worth about $250 billion, has investments in many industries but becoming a big power generator is not yet a priority. A major equipment supplier to fossil fuel industries such as coal and coal seam gas, GE also rivals Denmark's Vestas as the world's biggest producer of wind turbines. ''We're energy agnostic,'' Waters says. ''We want to be involved in the energy sector of the future and we're transitioning our business accordingly into distributed power, into renewables, into smart grids and energy storage.''

The spread of tri-generation, with plants generating heat, cooling and power to local precincts, is among GE's target businesses. The company is in talks with Queensland universities for campus-wide energy supplies and for Springfield, southeast of Brisbane, which will see its population surge five-fold to 100,000 over the next two decades.

The shift to locally supplied energy, potentially much more efficient to operate and with lower carbon emissions, means less future demand for power from the National Electricity Market. Power consumption from the NEM has been in decline for four years, and the loss of demand from aluminium smelters and other manufacturers - including Ford factories in Victoria from 2016 - is likely to see that trend continue.

GE, CSIRO and some 40 key power industry players are thrashing out future scenarios for the electricity sector. The Future Grid Forum, which includes an assessment of how the network can accommodate a much higher share of renewables over the next decade, will release its report in October - after the federal election.

Waters directs GE's ecomagination division in Australia, and chairs Sustainable Business Australia - which puts him at odds with firms opposed to a carbon price. GE imposed internal controls on carbon since 2005 and cut its footprint by 30 per cent since.