Spain learns the real problem with renewable energy – COST!

Spain will cut its subsidy to solar photovoltaic plants because of national debt.

Estimates put the investment in solar energy in Spain at €18bn – but the investment was predicated, as it is with all flakey renewables, on taxpayer subsidies. With the country’s finances in ruins, making sacrifices for the Earth Goddess Gaia is an option Spain can no longer afford. Incredibly, Spain pays more in subsidies for renewables than the total cost of energy production for the country. It leaves industry with bills 17 per cent higher than the EU average.

“Sustainability” has been the magic word that extracted large sums of public subsidy that couldn’t otherwise have been rationally justified using traditional cost/benefit measures. Spain paid 11 times more for “green” energy than it did for fossil fuels. The public makes up the difference.

More details here.

The Spanish government is set to enforce a cut of 30% in subsidies for
existing solar photovoltaic plants following a meeting with solar industry
bodies Wednesday, a source at the Spanish Photovoltaic Industry Association
(ASIF) said Thursday.

The higher cost of renewable power is helping to drive up the deficit.

Diaz said that while the government was insisting on a 30% cut it
was unclear as to how this would be achieved while a huge concern for the
industry was the impact that the subsidy cut would have on bank financing
since many of the existing projects were constructed on the agreement that the
revenue would be clawed back by government subsidies.

So there you have it. You can not subsidize a nation to go green. Governments should spend 5% per year of the estimated cost on R&D and require demonstration plants. If necessary, you may have to wait until oil is $140 per barrel. If you have truly free markets, the market will provide.

Share and Enjoy:
  • Print

Related posts:

  1. Five myths about green energy
  2. Cap & Trade Bill – The real cost
  3. Climategate – Now GreanJobsGate
  4. Yes he did!
  5. Even ABC News? A little late but truth is truth.

Comments are closed.