The green energy industry in Europe has been heavily subsidized for many years now. They have a carbon market and carbon emissions trading, which features a product that is just a government artifact. But people are finding that even fake markets have boom and bust cycles. In England, Warning over renewables as economic crisis leaves funding gap
Scant aid, too much hype and unrealistic targets threaten climate-change pledges
Green power companies are heading for “crisis” and Britain should no longer rely on them to meet its energy security and climate change obligations, some industry experts are warning.
The difficulties – triggered by the credit crunch, recession and a collapse in the carbon price – have led to new demands this weekend to ministers from companies warning that their renewables schemes are at risk without more financial aid.
Over the past week alone, the previously fast-growing renewable energy sector has seen Shell decide to stop building wind and solar schemes worldwide, the wave company Pelamis hit by technical and financial troubles, and EDF Energy warn that UK renewables targets would not be realised and should be scaled back to achievable levels.
In addition, a group of more than 40 businesses has taken the unique step of writing collectively to Joan Ruddock, the energy and climate change minister, warning her of the threats to a host of projects unless something is done.
Any guesses what “something” is?
“I think it’s heading towards a crisis,” said Andrew Mill, who sits on the government’s Renewables Advisory Board. “The government has done a lot in terms of policies and targets, but the reality is that it was always going to take a lot of money to make it happen. And that money is not coming through quickly enough.“
Tip of the iceberg?
The situation could be worse because green industry figures often suggest that everything is fine, argues Mill. “A lot of the [renewable companies] can’t afford to talk about it as they need to be seen as a good investment. If they don’t give out a good story then they can’t raise money.”
Coming to your state if the President gets his way.
Thanks to Open Europe