Spain’s green energy industry is collapsing as government support runs out
Spain went all in on “green energy” because it was the future, it would provide jobs, and it would grow their economy, so they lavished the industry with subsidies and caps on electric rates, charging less for “renewable” electricity than the cost of producing it. It’s no wonder wind and solar companies were having a great time, not unlike what wind energy companies are doing here in the US. But, as Instapundit is fond of saying, “Something that can’t go on forever, won’t.”
Reality sets in
With massive deficits hammering their economy, Spain can no longer afford to prop up the green industry, and as you would expect, the businesses used to receiving government money, are suffering, badly.
State subsidies to clean energy producers have already fallen by between 12 and 40 percent on average in recent years, industry analysts say.
They could fall by another 10-20 percent in a new energy sector reform expected mid-July, according to the Spanish media.
In the wind turbine industry alone we have lost 20,000 jobs and in the solar energy sector it’s probably more.
Investors flee, individuals lose
Investors in the industry are running for the exits and funds invested in the companies are falling. Many individuals had been encouraged by the government to invest their money in the green sector and now they’re losing their savings and hopes of retirement income as payments for the electricity produced are drying up. (Farmers here in the US, promised annual payments long into the future may want to think about that.)
We’re on the same edge here
Of course, nothing like that could happen in the USA, with a $17 trillion debt, trillion dollar deficits and the sale of wind energy propped up by Production Tax Credits, … no, nothing like that could ever happen here.
Without massive support, wind energy isn’t viable
Wind energy isn’t a real business, it’s only growing because of government support. With tax credits for building and installing wind turbines, tax credits to offset the high price of the electricity produced, exclusions in Pennsylvania that prohibit taxing the turbines and increasing mandates to utilities to buy that electricity, it’s all an illusion. Without the special favors available to the wind industry, it would collapse just like it’s already collapsing in Spain.
Wind turbines are not green, they’re not reliable, they don’t replace any conventional power plants, they destroy the beauty of the landscape, they lower property values and they raise electric rates. There’s no upside.
We don’t want or need wind turbines. We don’t need wind developers with big plans telling us what to do, while collecting big government handouts for “green energy.” It isn’t wind, it’s hot air.