The European nations have led the world in the installation of wind and solar, the renewable technologies. But now the high subsidies that were imposed to make these renewables look attractive are becoming intolerable.
Peter Glover has posted “The ‘Great Renewables Scam’ unravels” on thecommentator.com. Glover writes:
Energy insiders have long known that the notion of ‘renewable energy’ is a romantic proposition – and an economic bust. But it is amazing what the lure of guaranteed ‘few strings attached’ government subsidies can achieve. Even the Big Oil companies bought into the renewables revolution, albeit mostly for PR reasons. Like Shell, however, many quickly abandoned their fledgling renewable arms. Post-2008, they knew, the subsidy regimes could not last. Neither was the public buying into the new PR message.
Now it was just a question of time before Europe’s world leading pioneers of solar and wind power, Germany and the UK, decided they had had enough of the self-inflicted economic pain. And all the signs are – as Germany’s solar sector just went belly up and the UK is made aware of how much every wind job actually costs – that the slow implosion of the renewables revolution is under way.
The plain fact is that installing solar panels, especially in the northern hemisphere, makes about as much economic sense as Iran heading up a UN Human Rights Commission (which it has done by the way). Equally, the viability of windfarms has always been the renewables industry’s worst kept secret.
And yet, aided by aggressive and heavily-funded green lobbies, leftist social engineers, appalling journalism, naive politicians and unscrupulous opportunistic renewable energy entrepreneurs, wind turbines and the photovoltaic industry quickly became established facts on the ground, giving the appearance of economic ‘viability’. Why else would government back them using our cash?
With many of the major corporations pulling back or pulling out completely, things are not looking good for renewables. Glover has a lot of detail in the posting, but I leave you with a couple more of his observations:
The attraction of a quick buck when government slush-fund subsidies are on offer has always attracted entrepreneurs, corporate industry, and investors alike. The trouble is that lavish subsidies will always be subject to what our Gallic friends would call: Le Guillotine. There’s a cut off point – and its fast approaching.
And what is the tip of the day for prospective investors in energy stocks? Two words: shale gas. While it may not be a renewable resource, it sure is a safe bet to be a sustainable one – and well beyond our generation.