By P Gosselin
Germany’s online Report24 discusses the insolvency of Solara4 (at Alcoutim in the Algarve), which was once celebrated as Portugal’s largest flagship solar park (~219 MW) built without traditional state-backed feed-in tariffs.
Europe’s green energies refuse to perform. Image by NoTricksZone using Grok AI.
A major problem was the high solar expansion across the Iberian Peninsula, which today means thousands of megawatts of solar power hit the grid simultaneously during peak sunny hours. This oversupply causes wholesale electricity prices to drop to zero or into negative territory precisely when the plant’s production is highest, drastically reducing expected revenue.
Moreover, the solar park consistently produced less electricity than originally calculated in initial forecasts, which undermined the project’s financial projections despite having a long-term Power Purchase Agreement (PPA).
The huge solar park also suffered several technical failures, including inverter fires within the 12 months leading up to insolvency. A major fire in late May 2026 knocked out roughly 10% of the facility, taking an estimated 8 to 14 weeks to repair and leading to costly downtime and maintenance fees.
As a capital-intensive project, the solar park carried significant remaining debt (tens of millions of euros) owed to primary lenders like Investec and Kommunalkredit Austria. Ongoing fixed costs (maintenance, insurance, interest) became unmanageable as refinancing deadlines approached.
Another factor is that the operating company faces an ongoing arbitration dispute with Chinese contractor CTIEC (China Triumph International Engineering), which claims approximately €143 million from a cancelled construction contract.
The holding company, WElink Energy Portugal 2 (UK) Limited, entered insolvency administration on June 11, 2026, though the solar plant itself continues to generate electricity.
To survive the price collapses, WElink planned to transform the site into a hybrid facility with wind power and a 100 MW battery storage system. Ironically, while the original solar park was touted as subsidy-free, the new battery system is backed by €16.45 million in public funding from Portugal’s Recovery and Resilience Plan (PRR).
Report24 argues that “free solar energy” does not equal economically viable power. Capital costs, timing of generation, grid stability, and price cannibalization pose severe financial risks for massive, un-subsidized solar installations.
In summary, Europe’s green energy revolution is going the way of communism: lots of rosy promises turning into an economic debacle. Collapse is inevitable.
How less than wise can a group of investors be to think that a unsubsidized solar farm can be competitive against subsidized projects? Hopefully, the Austrian investors learned something from their misadventure and other banks take notice. This spending money on projects that don’t do anything positive for the environment and only make electricity more expensive needs to end sooner instead of later. If the rest of Europe wants mega-scale wind and solar they can simply follow Germany’s “proven” enegiewende business model:
Germany is building renewables even when they destroy market value because market value is no longer the objective function.
Germany explicitly shields renewable investors through:
This is not hidden; it’s policy.
Recent German legislation explicitly acknowledges:
So when wind produces at zero price:
From the system perspective:
This is exactly why newer academic work now asks whether German wind and solar are still dependent on policy support—and answers yes at higher penetration. [nhh.no]
They should have learned from their neighbors that diesel generators at night can enhance returns from these facilities.
Agree, so dumb that they actually deserve to lose their investments.
Oh no! Anyway, last week…
And the Americans are developing micro-nuclear. At 19 cents USD per kwh.
So long solar – it has been a pleasant little fling, but the dream has ended.
You just can’t mix green ideology with reality.
Here is a new business opportunity – restoring houses from their ugly panels. And decommissioning the sea monsters – aka wind turbines.
. . . and very likely will continue “developing” micro-nuclear for the next 20 or more years.
TYS could be right. The next US president could be as anti-US as Bush/Obama/Biden. Such a president would erect barriers “in the name of safety” to nuclear development.
Like that incredible cheap super advanced battery technology that is always about to make a stunning difference?
Developing at taxpayer expense?
“Developing at taxpayer expense?” No. The primary government input is reduced (and unnecessary) regulation. Clearing the path to advancement by removing mindless, useless, lazy, worthless and expensive bureaucrats and bureaucracy.
Yeah – like solar, wind, EVs – such successful endeavors such as Ivanpah solar at $2.2 Billion, Solyndra at $535 million, Abound Solar at $400 million, etc
Hell – EVs cost estimates for taxpayers are somewhere at $1 trillion
Oh – now you’re worried about taxpayers?
Europe has an answer – https://copenhagenatomics.com Thorium power is the answer.
Yeah, right . . . with NO practical demonstration that it can be deployed safely, reliably, and economically at GRID-SCALE.
However, I have to admit there are tons of PowerPoint briefing/advertising presentations that claim differently.
The Molten Salt Reactor Experiment (MSRE) at Oak Ridge ran successfully from 1965-1969 using Hastelloy-N, a nickel-based alloy developed specifically for molten fluoride salts.
The good news:
The bad news:
C-atomics better have new metallurgy or plan on short life cycle IMHO.
High density depleted uranium has been studied for engineering materials whose corrosion behavior could be dramatically altered through alloying with Ti, Nb, Cr, and similar elements. The military materials literature shows that corrosion resistance was a major research focus, not an afterthought. That was 20 years ago, if some new metal or cladding has been perfected it hasn’t been broadly announced/advertised or having been approved for use by the NRC.
The Chinese have all the Oak Ridge experiment for free…they are developing their own Thorium reactor….thorium is much more abundant than uranium and He3 for fusion. Oak Ridge was abandoned because thorium is not useful for weapons…too bad decades have been wasted.
Well, I observe that commercial nuclear fission power plants were developed and put into operation in the US and other nations around the world despite the fact that U-238, enriched to contain 3–5% U-235, that fuels the vast majority of those reactors is not useful for weapons.
Hah!
Notice the word “experiment” there.
Also this, which you failed to note:
The Molten Salt Reactor Experiment (MSRE) at Oak Ridge National Laboratory had an initial design power of 15 MW-thermal though it typically operated at 7.4 to 8 MW-thermal during actual experiments. During its operation it output ZERO electrical power because it was a thermal test reactor designed to study fluid-fuel concepts and did not have capability to generate electricity.
And, yeah, that experiment ended some 57 years ago . . . and apparently failed to impress anyone.
“Breeder”reactors were chosen by Nixon administration and “Dick” himself relished that Callyfornia would get a multi billion dollar plant – no money for futher Thorium liquid salts work. Looking back….pursuing Thorium Liquid Salts cooled reactors would have been a better course IMO.
I guess I need to point out the MSRE demonstrations of 57+ years ago not only failed to impress the US Government (perhaps for the reason that you mentioned, perhaps for other reasons) but they also failed to impress commercial power plant builders and company investors . . . you know, those looking for an easy path to make a buck.
It’s not too hard to imagine the reasons for their decisions.
ThorCon Power is another company developing a thorium liquid sals reactor that would be built in a shipyard….Lars Jorgenson is the leader ….Indoneia is supposedly going to buy one for completion in 2032.
ToldYouSo, you’re not telling me anything. You either didn’t understand what I wrote about the MSRE at Oak Ridge, or you missed it. Yes, the “E” stands for experiment, and yes there was “bad news” as I reported. Here’s an exact copy/paste:
The Molten Salt Reactor Experiment (MSRE) at Oak Ridge ran successfully from 1965-1969 using Hastelloy-N, a nickel-based alloy developed specifically for molten fluoride salts.
The good news:
The bad news:
C-atomics better have new metallurgy or plan on short life cycle IMHO.
Comment: What I implied is that yes, it ran successfully, despite your implying it failed because it didn’t meet an objective that was not part of the experiment. As a retired NACE certified corrosion specialist I’m suggesting the need for new metallurgy or short-cycle corrosion related equipment replacement.
The experiment expected < 30-60 year service for critical equipment because of grain boundary attack; the experiment was successful because it provided a rate measurement. I struggle to see NRC design approval without new advanced embrittlement resistant metallurgy proven successful in a long-running pilot plant. Hastelloy-N was not proven fit for commercial operation based on Oak Ridge.
Given so many words that you provided, I’ll just say that your definition of “success” is far different from mine.
That, or I mistakenly understood the major purpose of MSRE was to demonstrate a path toward a new nuclear reactor design to produce electricity, not just to provide neutrons and test chemical compatibility of materials.
Good luck to you.
Surely there were sophisticated models that mapped out what a success this solar enterprise was going to be?
Anyone? Anyone?
Voodoo economics?
“sophisticated models”? . . . come again
“Triple F” – Fairytale Financial Framework. More easily automated than unicorn farts. Also resonates with all those kids to whom fairytales were regular bedtime reading.
Predicted massive monetary return due to perpetual motion generators.
LOLOLOLOLOLOLOLOLOLOLOLOLOLOL!!!!!!!!
The simple, bottom line from the above article:
TINSTAAFL = There Is No Such Thing As A Free Lunch
It’s true in science, it’s true in engineering, it’s true in biology, it’s true in Econ 101.
Why did Portugal’s national-level bureaucracy and WElink Energy Portugal 2 (UK) Limited both ignore this fact, proven time-after-time in human history?
Fortunately we don’t have to worry about the German Energiewende following suit, they are stubborn enough to ride that ship to the bottom of the abyssal depths; where it belongs!
How can a country that produced Einstein, Planck, Mozart, Bach, and Beethoven become so completely idiotic that they shutter perfectly good nuclear plants, and demolish coal plants to prevent them from being reopened?
Are the Greens just the new Nazis; dreaming of a rainbow-flagged Fourth Reich?
Germany also produced Hitler…
Hmmm . . . reminds me that the USA produced Donald Trump.
Oh, c’mon, you know . . . the Orange Man-who-would-be-king who said just today, regarding his war with Iran [verbatim quote]:
“. . . it’s a small price to pay for keeping the world safe, keeping our country safe . . . they could take out a city . . . let ’em take, let it, let ’em take out Los Angeles, let ’em take out San Diego . . . that’s . . . this is a very small price to pay, and it’s going to be over with very soon . . . it’s essentially almost over with”.
This was not said with sense of humor, but to the cheers of his ardent followers . . . hard to call them “Americans” in this context.
Here’s the video replay since this seems so absurd, even treasonous, in today’s world:
https://www.youtube.com/watch?v=FurUNgg5L7c
For reference, there are an estimated 3.18 million U.S. citizens current living within the city limits of Los Angeles and an estimated 1.26 million U.S. citizens living within the city limits of San Diego. Collateral damage, I guess.
It appears Donald Trump’s “Art of the Deal” features appeasement a la WWII’s Neville Chamberlain.
…and Marx.
If there is anywhere in Europe where solar had a chance of working, it was Spain and Portugal.
Low latitudes and lots of sunshine.
If they can’t make it there, what chance does solar have in the rest of Europe?
The great success of free market capitalism is the way resources are best allocated by the supply/demand/price mechanism to correct supply/demand mismatch – consumer interests served, wealth created.
It wasn’t invented, it was discovered centuries ago – it just works, under nobody’s control or direction – “as if guided by an invisible hand”.
Net Zero is a political invention to do the exact opposite. Heavy handed Governments push and shove the market, consumers, producers about with no idea or care of the consequences – supply/demand mismatch, mis-allocation of resources consumer interests ignored – wealth destroyed.
The problem is that those on the left are absolutely convinced that everybody should desire whatever it is that they desire.
The fact others don’t, is just proof that as WB likes to say, markets aren’t efficient. Therefore government force is needed to force the markets to do what the socialists want it to do.
“A major problem was the high solar expansion across the Iberian Peninsula, which today means thousands of megawatts of solar power hit the grid simultaneously during peak sunny hours. This oversupply causes wholesale electricity prices to drop to zero or into negative territory precisely when the plant’s production is highest, drastically reducing expected revenue.“
The above problem should have been addressed from the beginning. If one is planning to build a large solar farm in a productive sunny area, then the plans should include methods to sell the oversupply, during a particular time, at a profitable price where the electricity is needed.
To do this, the obvious choice is to install long distance HVDC lines and subsea HVDC cables to countries and areas with a different time line, as well as having a degree of battery storage in place.
Portugal does not currently operate any long-distance domestic or cross-border HVDC transmission lines, but is planning to do so. So at least they appear to be learning from their mistakes.
Great idea! And HVDC transmission lines are practically free, too!
/sarc
The problem is that the all of the governments are forcing large solar farms on their population. There simply is no where to sell the excess to.
Not true. Have you heard of the Australia-Asia Power Link (AAPowerLink), which is a $22+ billion project currently under development to export solar energy from the Australian desert directly to Singapore via a 4,200 km – 4,300 km subsea cable. It will be by far the longest underwater cable ever attempted.
The project initially collapsed into voluntary administration in January 2023 due to a governance and funding dispute between its two billionaire co-owners, Mike Cannon-Brookes and Andrew “Twiggy” Forrest.
Because the project was incredibly complex—requiring international regulatory approvals, subsea mapping, and advanced engineering studies—the company was burning through cash rapidly without any immediate incoming revenue, forcing it into administration once the founders stopped funding it.
However, the collapse was ultimately resolved in May 2023, when Mike Cannon-Brookes’ Grok Ventures successfully bought out SunCable during the administration process, defeating a rival bid from Forrest. This allowed Cannon-Brookes to take total control and proceed with the original subsea cable vision, which led to the project getting back on track.
This project is entirely funded by private capital and does not currently receive any major public subsidies or direct government funding for its development, according to Google AI.
However, the Australian government is helping through ‘fast-tracking’ processes which streamline approvals and reduce red tape.
It will be interesting to see how the project progresses. It is expected that the first supply of power will be delivered to industrial estates in Darwin in 2032, and after the subsea HVDC transmission system is completed, electricity will be delivered to Singapore some time after 2035 when I’ll be 93 years young. (wink)
ROFL I wet myself laughing perhaps fast forward to it’s current status.
Yes the Australian Government streamlined the approval and that is fine as long as they don’t use Taxpayer money.
The fun part is the Powell Creek solar precinct near Tennant Creek on indigenous lands with a 70 year agreement. Ask twiggy Forrest how that could all go wrong and you would hope they got every family to vote 🙂
At the moment they are still kicking the tin around looking for anyone stupid enough to invest in it.
4000 km power lines as a solution.
That’s so funny that I hardly know where to start.
First off you are going to lose a substantial fraction of your power over that distance.
Second, have you checked out the cost of long distance power?
Third, how long do you expect that cable to last, especially given the vulcanism and active plate tectonics in that region.
The advantage of HVDC lines, and especially UHVDC lines, is that they do not lose a substantail fraction of their power over long distances. Typically the loss is between 1% and 4% per 1,000 kilometres, or a maximum of 16% over 4000 km.
However, the lifespan for HVDC undersea cables is only 30-40 years, according to Google AI, and the installation cost is much higher than that of overhead lines, so I tend to agree that installing undersea cables is not a good idea.
However, overhead UHVDC (Ultra High Voltage) lines are claimed to have a lifespan of 50 to 80 years, so that might be a practical option to deliver solar power from arid regions to the cities.
For Portugal the obvious market for excess solar electricity is Spain. The big problem is that if demand is too low in Portugal it is likely demand in Spain is also low. Spain also has a great deal of solar, so the problem is compounded.