Europe’s green energy industry faces collapse, claims conservative news site
Quick Take: I believe it is important to watch the progress of renewable energy in Europe. The Europeans are more aggressive about renewable energy than the United States and many other regions of the world. But they are experiencing many problems, including the German revolt against renewables. Sure, we could ignore the lessons learned in Europe and drive over the same cliffs ourselves. Or we could study what's going on and avoid some of those pitfalls. Here is one point of view from the conservative Daily Caller website. - Jesse Berst
The renewables industries in Germany, Italy and Spain are facing huge problems.
German solar demand is in freefall. It has dropped 45% in 2014, after declining 60% in 2013. The government is cracking down on solar generation - which could cause solar demand to plummet even further. What's more, Germany plans to levy charges on solar panel owners. Households and industrial sites generating green energy would have to pay high surcharges. Currently, energy-intensive industrial sites have been exempted so they can remain internationally competitive. As a result, households and commercial establishments bear the brunt of the high energy costs.
Germany is looking for ways to reform its green energy laws to lower power prices while still meeting emissions goals.
Italy is feeling the pain to
Italian Prime Minister Matteo Renzi’s left-wing government has angered solar companies by proposing a 10% cut in power prices to spur economic recovery. The move would effectively cut the subsidy to solar companies, reports Reuters. Italy subsidizes solar power through tariffs charged to consumers. These tariffs have raised energy bills and will cost Italians a projected $272 billion over the next 20 years.
Spain seeks to end green subsidies
Spain is ending subsidies for renewables that have been in place since the 1990s. The new rates are based on a "reasonable return” and are meant to rein in spiraling energy costs and an overproduction of green energy, reports Bloomberg.
Spain became a poster child for green energy production after spending $68 billion over 25 years to boost wind and solar. But subsidies spiraled out of control, costing the country more than $12 billion in 2013 alone. Last year, Spain began to dismantle its green energy subsidy system.
Jesse Berst is the founder and Chief Analyst of SGN and Chairman of the Smart Cities Council, an industry coalition.
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