Europe a Green Energy Basket Case
From Troy Media
By Stephen Murgatroyd
EU member states have spent about €600 billion ($882 billion) on renewable energy projects since 2005, according to Bloomberg New Energy Finance. This funding was intended to help green energy achieve commercially-competitive status and make a significant contribution to lowering carbon emissions and reducing the “threat” of climate change.
But now, most European governments are backing off this strategy. The most recent shift came from the Czech government, which has decided to end all subsidies for new renewable energy projects at the end of this year. Almost all EU member states also have begun the process of rolling back and cutting green subsidies.
There are many reasons for the change in strategy.
Take the case of Spain. Because it failed to control the cost of guaranteed subsidies, the country is now saddled with €126 billion of obligations to renewable-energy investors. Now that the Spanish government has dramatically curtailed these subsidies, even retrospectively, more than 50,000 solar entrepreneurs face financial disaster and bankruptcy.
Germany is another interesting case. During the past year, the wave of bankruptcies in solar has devastated the entire industry, while solar investors have lost almost €25 billion on the stock market. And now that Germany plans to phase out subsidies altogether so as to stabilize energy costs, its solar industry is likely to disappear by the end of the decade.
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