We have been subsidizing useless, low-density power sources for decades and received no return value, just increased costs. Now according to Reuters 3 of Europe’s “top renewable energy companies” are the latest “victims”
European renewables caught in perfect storm – Three of Europe’s top renewable energy companies became the latest victims of a global collapse in prices, massive oversupply and governments slashing subsidies in light of growing debt piles, echoing recent comments from overseas peers.
SolarWorld, Q-Cells and Nordex are among the latest renewable energy companies to be hit by a mix of high inventories, slower demand and banks tightening their purses regarding wind parks.
Solar companies in particular suffered as they ramped up production last year to meet a surge in demand from Germany and Italy where customers rushed to buy solar panels before governments cut vital subsidies.
Both economies are reducing so-called feed-in tariffs to make the solar sector more productive, and subsidies and prices have been falling at a faster rate than manufacturing costs, leading Germany’s renewable elite to slash their 2011 outlooks. (Reuters)
