11/20/2011

Dutch give up on wind farms, needed subsidies just too big for country to pay

Can't people understand that these massive subsidies make countries poorer? From Reuters:

When the Netherlands built its first sea-based wind turbines in 2006, they were seen as symbols of a greener future.

Towering over the waves of the North Sea like an army of giants, blades whipping through the wind, the turbines were the country's best hope to curb carbon emissions and meet growing demand for electricity.

The 36 turbines -- each one the height of a 30-storey building -- produce enough electricity to meet the needs of more than 100,000 households each year.

But five years later the green future looks a long way off. Faced with the need to cut its budget deficit, the Dutch government says offshore wind power is too expensive and that it cannot afford to subsidize the entire cost of 18 cents per kilowatt hour -- some 4.5 billion euros last year. . . .

But the new billing system will reap only a third of what was previously available to the industry in subsidies -- the government forecasts 1.5 billion euros every year -- while the pricing scale of the investment plan makes it more likely that interested parties will choose less expensive technologies than wind.

The outlook for Dutch wind projects seems bleak. . . .

Labels: ,

1 Comments:

Blogger Zundfolge said...

Aside from making countries poorer, subsidies also reduce technological advancement in the field subsidized.

I was thinking about this with the whole Solendra thing.

If government gives less efficient and less profitable technology a leg up in the marketplace, there ends up being less money for R&D in both that form of technology and other competing forms.

Why would I go out and invent a BETTER photo-voltaic panel when the government is going to make my crappy one profitable? Or worse, make my competition who makes the crappy ones profitable while I drown because they've driven the value of my product down.

or

Why would I invent a Hydrogen powered car when Electrics and Gas-Electric hybrids get tax dollars?

The law of unintended consequences is a real bitch.

11/20/2011 9:54 PM  

Post a Comment

Links to this post:

Create a Link

<< Home