Monday, February 28, 2011

Looking for a Sugar Daddy

Reuters has an article today noting pending cutbacks to the solar subsidy level in England, "Solar ‘Gold Rush’ in U.K. May Die With Incentive Roll-Back.”
The article notes the impact of similar roll-backs in Spain and the Czech Republic – they could also have added Germany as it has struggled to contain solar growth to a level their grid can handle.
From Ontario, what is most striking is the hysterical final paragraphs mirror the apocalyptic tone of the overly incentivized here:

“The danger for the government is investors won’t have confidence in other incentive programs, said Good Energy’s Davenport and Shorrock at Low Carbon Solar.
“You won’t get offshore wind money, you won’t get tidal energy money, you won’t get carbon capture and storage money because it’s all got to come from these same pension funds and they won’t trust the government,” Shorrock said.
“That’s the kind of seed of doubt the government has now sown, and it’s very, very damaging.” 

If the business is getting subsidies, not getting subsidies is a hindrance.  In Ontario the big pension funds are, of course, the teachers and other government employees – I don’t know what the situation in England is referring to, but it sounds like quite the scam (get a government job, get a pension, get the pension to get great rates of return through government subsidy).
If the business is generating electricity to service demand, they should be getting better at it.  If that isn’t the business … alas, none of us stays young and sexy forever.  Eventually sugar daddies can no longer be found.

Maybe the green energy folks will have to buy their own drinks.

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