Wind and solar energy subsidies are experiencing drastic cutbacks in many
European nations and some places in the United states
Wind and Solar Subsidies Drying Up In Europe
- Jack Dini Saturday, March 19, 2011
Wind and solar energy subsidies are experiencing drastic cutbacks in many
European nations and some places in the United states
In a radical change of policy, the Netherlands is reducing its targets for
renewable energy and slashing the subsidies for wind and solar power. It has
also given the green light for the country's first new nuclear power plants
in almost 40 years. Why the change? Wind and solar subsidies are too
expensive. Holland thus becomes the first country to abandon the EU-wide
target of producing 20 percent of its domestic power from renewables. (1)
Italy's government passed a decree to stop solar energy and deep cuts in
wind energy due to their high costs to consumers and technical problems
integrating these sources into the existing infrastructure. (2)
Lawrence Solomon reports that December 2010 was a bad month for subsidies
(3):
Spain slashed payouts for wind projects by 35% while denying support for
solar thermal projects in their first year of operation.
This latest round of Spanish cuts followed announcements in November that
payouts for solar photovoltaic plants would be cut by 45%.
France announced a four-month freeze on solar projects and a cap on the
amount of solar that can be built. These measures and others continue a
retrenchment that saw industry payouts cut twice last year, and that will
likely continue as opposition grows to France's rapidly using power tax on
electricity.
The German government announced it may discontinue the solar industry's
sweetheart tariffs in 2012. This latest announcement follows a surprise
reduction in 2009 and another reduction to start in 2011.
Solomon also reported that in October, New South Wales, Australia's most
populous state, slashed by two-thirds the revenue that homeowners who had
installed solar panels would receive from 60 cents per kilowatt-hour to 20
cents. New South Wales overnight went from being Australia's most generous
to least generous subsidizer. Also in October, the UK government announced
that withering spending cuts were coming to renewable projects. (3)
Florida, Idaho, Kentucky, Rhode Island and Virginia either cancelled or
delayed renewable energy projects
In the US, state regulators in Florida, Idaho, Kentucky, Rhode Island and
Virginia either cancelled or delayed renewable energy projects that would
raise rates for consumers. (3)
Why?
Thanks in part to the wind farm subsidies, Danes pay some of Europe's
highest energy tariffs—on average, more than twice those in Britain. (4)
In Spain, 'green jobs' can require a subsidy of $1,000,000 per job.
Wind-related jobs in Denmark are subsidized at the rate of 175 to 250
percent above average pay, roughly costing taxpayers $90,000 to $140,000 for
each 'green' employee. (5) Spain increased its electricity costs for
households and small businesses 20% between January 2010 and January 2011.
The government's official explanation of this increase is the huge bill for
renewables' subsidies. Industry's electricity costs have risen 110% and
Spain has over 20% official unemployment. (6)
Extreme green Ontario is experiencing rate hikes 50 times greater than those
countenanced in some US jurisdictions. (3)
Summary
Green jobs cannot reduce unemployment when they require significant
government assistance. When the President and Congress talk about green
jobs, they are talking about ones created via federal tax breaks, subsidies,
or outright mandates. For example, wind and solar-generated electricity
already enjoy subsidies nearly 50 times higher per unit of energy output
than ordinary coal and 100 times higher than natural gas. (7)
Kenneth Green sums this up quite well: "With $2.3 billion in Recovery Act
tax credits allocated for green manufacturers, President Obama and other
Democratic politicians have high hopes for green technology. But their
expectations clash with both economic theory and practical experience in
Europe. Green programs in Spain destroyed 2.2 jobs for every green job
created, while the capital needed for one green job in Italy could create
almost five jobs in the general economy. Wind and solar power have raised
household energy prices by 7.5 percent in Germany and Denmark has the
highest electricity prices in the European Union. Central planners in the
United Statestrying to promote green industry will fare no better at
creating jobs or stimulating the economy." (8)
References
Andrew Orlowski, "Holland slashes carbon targets, shuns wind for nuclear,"
The Register, February 2, 2011
P. Gosselin, "Arrivederci Solare! Italy Pushes to Cut Solar Subsidies,"
notrickszone.com, March 7, 2011
Lawrence Solomon, "Green Collapse," Financial Post, December 3, 2010
Andrew Gilligan, "An ill wind blows for Denmark's green energy revolution,"
telegraph.co.uk, September 12, 2010
Ed Hiserodt, "Danish Wind Power Overblown," the
american.com, September 15,
2009
Gabriel Calzada Alvarez, "Greenpeace Still Tilting at Windmills in Spain,"
Institute for Energy Research, February 15, 2011
Ben Lieberman, "Green Jobs: Environmental Red Tape Cancels Out Job
Creation," The Heritage Foundation, February 4, 2010
Kenneth P. Green, "The Myth of Green Energy Jobs: the European Experience,"
American Enterprise Institute for Public Policy, February 2011
(Canada Free Press - March 19, 2011)
http://canadafreepress.com/index.php/article/34596
