EU Internal Strategy Paper Calls For An End To Subsidies For Green Energies

Germany’s flagship political newspaper the Frankfurter Allgemeine Zeitung has an online report on an EU internal memo that bubbled up to public attention.

An EU Commission internal strategy paper “calls for an end to subsidies for solar and wind energy by EU countries and that this should be done as soon as possible”. EU Energy Commissar Günther Oettinger wants to officially present the paper in Brussels. This, writes the FAZ, will provide the German government with cover for its plan to cut its own subsidies for solar energy by 30%.

Despite all the symbolism and lip service by Merkel’s coalition government in support of wind and solar energy, its actions tell a different story. They don’t want them any more!

Also according to the paper, the price of photovoltaic systems have dropped 48% over the last five years. So it’s strange how that now solar energy is approaching affordability, the US government now wants to slap massive tariffs on Chinese imports and make the price totally unaffordable again.

The consumer has had to bear the high price of subsidized solar energy in the EU. The FAZ writes:

…the strong expansion of solar and wind power has caused the costs for consumers, and in some cases for taxpayers, to rise quickly. Because of the bad economic situation, energy costs for many people is often too high. The prices of energy source such as sun and wind thus should be left to the market forces as quickly as possible.”

Even with the generous subsidies, solar energy in Germany has still failed as most of Germany’s solar module manufacturing has been crushed by foreign competition in Asia, shedding thousands of jobs. Eliminating subsidies altogether would be a certain death blow.

The Commission also calls for a uniform support system of other alternative energy sources, and criticizes Europe’s patchwork of different support programs for renewable energy. This has led to the inefficient use – for example massive solar systems being constructed in northern Germany where the sun hardly shines and windmills are built where the wind hardly blows.

Whatever happens, one thing is certain: Europe is beginning to realize that green energies aren’t what they were once made out to be.

 

9 responses to “EU Internal Strategy Paper Calls For An End To Subsidies For Green Energies”

  1. archaeopteryx

    Glory, Glory, Hallelujah!

    Now I can go under in peace. Bankruptcy cum windmill is not fun

  2. BargHumer

    “Günther Oettinger wants to officially present the paper in Brussels” – is it just his personal wish or is he the “Internal commission”?
    Something doesn’t sound quite right. Perhaps I am being a bit picky because we just don’t expect the EU to do anything.

    1. DirkH

      Every commissioner – of which Oettinger is the German one, and the comissioner for energy – has 500 Eurocrat underlings, which in turn have tons of money to dole out for PDFs that they let write by whoever applies for the job. So, they order some writeup about energy. It could be you who writes that if you happen to have the right connections. Google “Subventionsberater” to find companies that can help you get those jobs. But of course they mostly go to cronies.

      In the end, the comissioner will present the paper he had ordered. Other comissioners, like Connie Hedegaard, the Danish Climate comissioner, will have counter-papers with a lot of social justice and environmental justice and climate justice in them. Then squabbles will develop within the comission.

      Finally, Merkel says “njet” or “da”. (She knows Russian 😉 )

  3. DirkH

    Okay, the EU commission says that prices for PV panels have cheapened faster than expected with 48% in 5 years. So they expected something slower, like the 10 years I expect for a halfing (That’s what I read from historic price curves since 1980).

    Edenhofer had in the IPCC renewable energy report written by the Greenpeace boy a graph that indicated a halfing every 5 years. So that graph was probably a lie.
    Can’t give you a link; the IPCC has moved or memoryholed the report.

    I think we will see that prices will stabilize for a few years before coming down furter – they are 5 years ahead of track now. These exponentials can’t be cheated.

  4. John F. Hultquist

    “So it’s strange how that now solar energy is approaching affordability, the US government now wants to slap massive tariffs on Chinese imports and make the price totally unaffordable again.”

    It is not very “strange” if you look at it from another viewpoint. A couple of thoughts. It has been said that ‘all politics is local’. And another – ‘follow the money’. There are notions about how a country should approach international trade with respect to domestic industry. The notion of “comparative advantage” and the notion of “infant industries” seem to be at odds. So while individuals, some groups, and some policies will benefit from inexpensive imports, other players object to the competition. When the second group is large and well organized it can provide political backing and money support to the party in power. Your statement above explains who is winning the argument.

  5. DirkH

    Handelsblatt has a long but relatively factual article about electricity price explosion in Germany, deindustrialisation.
    Prices have risen by 77% since 2000 for private households, 45% of the current end price are taxes and renewable energy cross subsidy.
    Interventionism is the new order, from 2013 on energy intensive industry will get compensation; EU comission has okayed it.
    Total cost of renewables cross subsidy has accumulated to 170 bn EUR over the years, twice the money Germany expects to lose in case of Greek default.
    (Journalists very slowly realize that energy is the master resource. Julian Simon knew it since the 70ies. Congrats, German Journalists. You’re learning.)
    http://www.handelsblatt.com/politik/deutschland/kostenexplosion-merkels-strompreisluege/6663536.html

    Concerned remark near the end: If Germany can’t produce enough green ‘leccy, industry will buy – woe betide ! – ‘leccy from other countries who produce it in polluting! ways – meaning that nothing is gained for climate protection! Oh noes!

    Warmism, the endgame.

    1. Casper

      “…industry will buy – woe betide ! – ‘leccy from other countries who produce it in polluting! ways – meaning that nothing is gained for climate protection! Oh noes!”

      It happens anyway: the products manufactured in China are imported into the European factories. A group of companies in China needn’t worry about the environmental impacts or CO2-taxes, because they wouldn’t allow it. The same group requires, however, we must pay CO2 tax and other contributions in Europe.

      “Warmism, the endgame.”

      Let me tell you something: “Nur die dümmsten Kälber wählen ihre Metzger selber” is still up to date. The real decision is up to plutocracy and nothing can change it. The Global Cooling, if it really comes, we be sold as a result of the Global Warming. And finally you will double pay for it as a customer. Do you want to bet?

      1. DirkH

        I think so as well, Casper. But it won’t be “warmism” anymore. The name will be different.
        The plutocrats/Club Of Rome/eurocrats exploit the desire of dumb people to believe in an apocalypse. They’re constantly trying out new scare scenarios.

        1. Casper

          I found a cute “explanation” for harsh winter we’ve seen lately when I was reading a Polish magazine. Someone claimed: Due to ice melting in the Arctic there is a lack of ice on the Barents Sea. When warm water arrives from the South there, a huge amounts of heat and moisture are released into the atmosphere. Therefore we may get a record snow fall. The lack of ice, of course, is caused by man made Global Warming. See you? We know both it’s a rubbish, but I works for dummies.