Monday, August 13, 2012

EON's recipe for success – Work Government Subsidies

An article on E. ON notes their strategy to lock up Russian gas supplies as they structure their 'business' to rely on subsidies for non-hydro renewables (they article notes the negative impact on hydro assets), and counting on future subsidies for fossil fuel plant capacity.
Predictably, in an environment where business decisions are driven entirely by subsidy, market pricing continues to collapse across much of Europe (unlike their unemployment rates - or debts).

EON's recipe for success – renewables plus Russian gas - Finance - Renewable energy news - Recharge - wind, solar, biomass, wave/tidal/hydro and geothermal:
Electricity prices continue to drop or stagnate across Europe. E.ON says forward prices for 2013 delivery are about €70/MWh in Italy, €60/MWh in the UK, €50/MWh in Spain, €48/MWh in Germany and €38/MWh in hydro-rich Scandinavia.
The sharpest drop has come in Germany, due in large part to the rampant addition of new wind and PV capacity.
E.ON acknowledges that many of its future investment decisions will be determined by the German government – such as who will pay for the expansion of Germany’s offshore grids, and whether to pay utilities to maintain ageing fossil plants in order to complement the country’s growing renewables portfolio.
Read the entire article at Renewable energy news - Recharge

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