Green Subsidies Wreak Havoc On German Economy

From Canada Free Press

Germany’s support for renewable energy is “breaking” the nation’s ability to pay for power and threatens the competitiveness of electricity producers, Handelsblatt cited a former [green] industry group leader as saying.

Guaranteed prices for solar and wind power, paid for by consumers, are threatening the renewable-energy industry’s ability to compete, the report said, citing Johannes Lackmann, the former head of Germany’s BEE renewable-energy lobby group.

Installations of solar panels may more than double this year to 9,000 megawatts, Handelsblatt said. That may help to boost the total cost of installed solar capacity in Germany to 85.4 billion euros ($106 billion) from 2000 to 2010, according to a study by the RWI economic institute, Handelsblatt said.

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DavidQ
June 22, 2010 4:33 pm

DandyTroll and no freewind.
I have no argument with you. I was, perhaps a bit to minimal in my comment.
Exploding drilling platforms and oil spills just tend to be more spectacular and comprehensible to us then the impact by PV and Wind Turbines. Though in my state, the wind project has taken a beautiful area and turned it into an industrial park with several hundred turbines (Stateline, WA). Its impact is obvious, and its value completely zero in a state (Washington) that gets almost 100% electricity from water and nuclear.
Thanks for providing more valuable information about the issue though. That Cape windfarm is simply dumb.

Jim Garrett
June 22, 2010 5:15 pm

So from what I can see:
The current (US) administration made a platform of saving the planet.
Even if that meant that “Electricity rates would necessarily skyrocket”-Obama.
So if they put the planet before people, and are willing to ignore the gulf spill until it reaches the coast, {which in my opinion was opportunistic}.
Then what does it say about their concern for people?
Both the last administration and the current are willing to burn or destroy food in the name of saving the planet.
All you useful idiots out there who love this guy need to wake up!

Gail Combs
June 22, 2010 5:42 pm

John Luft says:
June 22, 2010 at 9:40 am
……“Clean renewable energy”, eh? Well at least so far as you can see….but certainly not in reality. You might want to do some research into the rare earth mines in China which provide the materials for wind turbines, etc. The difference is that the greenies seem to keep their noses out of China and go after the softer targets because the western media are suckers for it.
____________________________________________________________________
The “greenies” keep their nose out of China because Maurice Strong, father of the greenie movement, is sitting in Beijing China positioned to make billions from the flow of western wealth into China.
I suggest you google and study up on Maurice Strong the ultimate puppeteer who has been pulling our governments’ strings for forty years.

Gail Combs
June 22, 2010 6:25 pm

James Sexton says:
June 22, 2010 at 11:11 am
And the list goes on. Spain, Germany, who’s next? It is absolutely maddening that the U.S. can’t look over to Europe as an example of what happens when renewables are totally embraced.
______________________________________________________________________
And what makes you think the some politicians in the US government are NOT looking at the EU?
First consider the Chicago Climate Exchange business dealings between Gore, Obama and Maurice Strong.
Maurice Strong is a key person. He is on the UN-funded Commission on Global Governance. Kofi Annan released Maurice Strong’s initial plan to begin reforming the UN. “As Executive Coordinator for Reform, Strong was hired specifically to restructure the sprawling UN system into the mechanism for global governance…
Is there a conflict between national sovereignty and the UN’s determination to provide “human security” to individual citizens within sovereign states? You bet. But the UN has an answer. Listen to Maurice Strong and the Commission on Global Governance:
“…countries are having to accept that in certain fields, sovereignty has to be exercised collectively, particularly in respect of the global commons.” (3)
“…the principle of sovereignty…must be further adapted to recognize changing realities.” (4)
“…there is a need to weigh a state’s right to autonomy against its people’s right to security.” (5)
“It is time to begin thinking about self-determination in a new context – the emerging context of a global neighborhood rather than the traditional context of a world of separate states.” (6)
“The concept of national sovereignty has been immutable, indeed a sacred principle of international relations. It is a principle which will yield only slowly and reluctantly to the new imperatives of global environmental cooperation. What is needed is recognition of the reality that…it is simply not feasible for sovereignty to be exercised unilaterally by individual nation-states, however powerful.” (7)
To Maurice Strong, national sovereignty is an obsolete concept. Maurice Strong is the person responsible for restructuring the UN. The process is now officially underway with changes that will have immediate consequences, and others that are preparatory for more sweeping changes in the future – as the world succumbs to the tightening grip of global governance…
The new reformation is underway. It is a reformation, not only of the United Nations, but of global societies. It is occurring daily with the blessings and staunch assistance of the Clinton/Gore Administration and many members of Congress. “
http://www.iahf.com/world/un-refm.html
This is the same Maurice Strong who started the CAGW ball rolling at the UN’s First Earth Summit in 1972.
This is the same Maurice Strong that stated:
“What if a small group of these word leaders were to conclude that the principle risk to the earth comes from the actions of the rich countries? And if the world is to survive, those rich countries would have to sign an agreement reducing their impact on the environment. Will they do it? Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?”
This man is one scary dude and he has major influence over Al Gore, the Clintons and possibly Obama. He is a major campaign contributor to both the democrats and the republicans even though he is a Canadian living in China. Pres. Bush got him the Chairmanship at Kyoto when Strong called in the favor!

June 22, 2010 8:28 pm

DirkH,
Regarding the article rating; it’s easy enough to tick-over the cookie-based counter. That only takes one person.
I’ve skimmed over the whole article and there are lots of bones to chew on; many more than the brief article on CFP/Bloomberg.
The bone with the most gristle is where RWI (Rhine-Westphalian Economic Research Intitute) recommends that the EEG (Renewable Energy Law) be abolished because it’s not motivating any substantial R&D. Leading German solar energy companies are putting less than 2% of turnover into R&D.
The rate of subsidy is enormous and financially unsustainable. The price of electricityon the European Energy Exchange is around 0.05 Euros; but the solar infeed tarrif is 0.31 Euros; 6 times the wholesale price of electricity. And the infeed amount is all that is “generated” and put back on the grid; not just the amount that’s over that consumed in the household. The 20-year guarrantee of subsidy is especially damaging to the German economy.
[And the economic damage from rorting the infeed policy is unaccounted. It’s easy enough to draw grid power in order to amplify the infeed amount in moderate proportion to that collected without anything being noticed simply via metering or cursory inspection. The subsidy makes it “worthwhile” for those who are even slightly unscrupulous.]

Jim
June 23, 2010 12:29 am

Re James Sexton says:
June 22, 2010 at 10:29 am …
Coal is a fossil fuel.

Gerard
June 23, 2010 2:14 am

The Labor Government in Australia in partnership with the Liberal opposition today agreed to pass legislation to devote a larger proportion of renewable enegy certificates to large scale renewable projects after the wind energy carpetbaggers bleated that their subsidies were being eaten into by householders use up REC’s on solar panels and heat pumps for hot water. We will now see a proliferation of wind tuerbines across our hills. What a shame that both sides of politics have fallen for this con. Macedon Ranges will now be desecrated by Roaring Forties proposal at Sidonia Hills but they will al be putting their snouts into the trough

Joe Lalonde
June 23, 2010 5:23 am

Question?
What happens in 20 years when these highly subsitized solar and wind energy projects fall apart due to age and maintenance?
No doubt they will be deemed old technology and scraped plus the costs will keep rising as society moves along.

Chris1958
June 23, 2010 7:35 am

Has anyone ever measured the carbon footprint of converting to renewables? For instance, digging up the ore, smelting and melting the metal for the turbines and windmill sails, making the concrete for the base of your windmills, and all the other bits and pieces?
I’d be fascinated if anyone out in the blogosphere knows of any attempt to study this aspect going green.

theBuckWheat
June 23, 2010 7:51 am

Karl Marx’s invisible hand at work again.

Gail Combs
June 23, 2010 12:43 pm

Chris1958 says:
June 23, 2010 at 7:35 am
Has anyone ever measured the carbon footprint of converting to renewables? …
________________________________________________________________
I think so. Check out:
http://www.windpowerfraud.com/
http://www.appinsys.com/GlobalWarming/WindEnergy.htm
http://nov55.com/wdm.html

Roger Knights
June 27, 2010 5:42 pm

http://www.businessweek.com/magazine/content/10_27/b4185016595808.htm
BusinessWeek June 28 — July 4:
June 24, 2010, 5:00PM EST
Wal-Mart’s Wind Power Gripe in Massachusetts
Cape Wind’s green power will cost it more. It’s trying to avoid the rate increase while trumpeting its green energy initiatives
………….
National Grid argues that everyone benefits from clean energy so it makes sense to spread the costs. While Cape Wind entails hefty initial costs, over time it will help lower rates if coal and natural gas prices rise, says Jim Gordon, president of Cape Wind Associates, which is building the wind farm. “This project is about transitioning to a cleaner energy future,” says Gordon, who hopes to start construction this year. “I’m surprised that Wal-Mart, which is trying to present a green image, would oppose America’s first offshore wind farm.”
… “Wal-Mart claims to want wind power but doesn’t want to pay for it,” says Adam M. Kanzer, managing director of Domini Social Investments, a green investment fund in New York. “In the long run, sustainability should be more efficient and save us money, but in the transition there are going to be up-front costs. Is Wal-Mart willing to help us make that transition?”

I want the “reasoning” above to be on the record here and for WUWTers to be prepared to encounter it. The renewables advocates are justifying their costliness by saying fossil fuels will become costlier. But why should that be so, unless their supply is restricted or they are taxed into bankruptcy, ala Obama? Natural gas supplies are abundant and its prices have been heading lower.