German Renewable Energy Company Announces Insolvency: “Victim Of Changed Feed-In Act Conditions”

Last Wednesday Seva Energie AG, located at the north German Ecopark in Emstek, announced insolvency. According to company 160 employees are affected. The news is the latest blow to the German renewable energy sector, which has seen a long string of similar insolvencies due to reduced subsidies and strong competition from abroad.

Seva Energie is specialized in thermal power stations, biogas and fuels.

The north German daily Münsterländische Tageszeitung here writes that the company is a “victim of the changed feed-in act conditions“. Especially hard hit was the company’s biogas systems area, which earlier had been massively supported through government subsidies for the growth of biofuel crops.

Seva Energie’s homepage motto:

SEVA Energie AG: We take responsibility for the next generation!

SEVA ENERGIE AG are focusing on the domain of regenerative energy and, by doing so, take on responsibility for those generations to come. With our technology, we would like to make a contribution towards a considerate treatment of resources which are available on our planet and towards the generating of energy without inflicting harm on the environment.”

That may be all fine and good, but perhaps policymakers and managers ought to first begin by taking responsibility for today’s generation – by promoting sustainable jobs that can survive without subsidies.

According to the mission statement, the company was founded in 1982 having recognized “anticipated scarcity of fossil fuels” and…”the enormous potential in the utilisation of regenerative energies.”

Unfortunately that potential was one merely fabricated by exorbitant, non-sustainable government subsidies – based on the junk science of global warming. Now 160 workers are facing uncertain futures, joining thousands of other victims of the German renewable energy illusion.

 

12 responses to “German Renewable Energy Company Announces Insolvency: “Victim Of Changed Feed-In Act Conditions””

  1. Stephen Richards

    Keep them coming. The more the merrier.

  2. Pointman

    Climate Prat of 2014 – Voting has started. Have your say.

    http://thepointman.wordpress.com/2014/11/29/there-can-only-be-one/

    Pointman

  3. Curious George

    Poor victims. How about taxpayers? I wonder how much the company brass made.

    1. DirkH

      Pulling the plug while the pulling is good.

  4. mike restin

    That’s what happens when you believe your own meme about running out of fossil fuels and the usefulness of renewables.
    Now they say we are using up all the clean water.
    Any water shortage or flooding problems are of our own making.
    The technology exists on how to keep the water out and we get plenty of precipitation in North America every year for an ample supply for everyone.
    The problem is we keep the skumbags in government that bend the rules to their liking and its screw the people.
    There is plenty of water just no leadership on how to control it for human advantage.
    We need to be like progressive when they push for the wrong answer.

    http://wattsupwiththat.files.wordpress.com/2014/11/clip_image001.jpg

  5. John F. Hultquist

    Sounds like they took hook-line-&sinker of Hubbert’s “peak production rate” line and ran with it. Hansen, Gore, Strong, the UN, and all the Greens fed the illusion and assured the misallocation of funds. No longer able to harvest subsidies, the game is over. Sad that it took 32 years.

  6. Streetcred

    Subsidy victims. When you need a subsidy to sustain your employment, your employment is temporary at best. It will last just as long as the subsidy. It is not sustainable employment. The industry creating unsustainable jobs is not a sustainable industry. The renewable energy industry is therefore not a sustainable industry. ‘Green’ jobs are unsustainable.

  7. DirkH

    World’s biggest private electricity company EON gives up; announces non-recurring losses (haha), will split off “old energies”, coal, nuclear, gas, and in future concentrate on subsidized wind and solar.
    http://www.zeit.de/wirtschaft/unternehmen/2014-11/eon-energiekonzern-aufspaltung

    In other news, EON seen in shady corner of town, asking Russian immigrants for a gun to shoot itself in the face.

    1. Bernd Felsche

      I think I see where they’re going. Separating the renewable from reliable energy providers allows E.On Reliable to declare operating losses imposed by being forced to maintain conventional generating plant when it’s financially unviable. E.On has corporate knowledge of the inherent problem; certainly from 2005 onwards when they declared in their wind power report that wind power needed 96% (IIRC) rapidly despatchable shadow capacity as well as an independent grid to maintain supply stability.

      The Bundesnetzagentur (Federal Network Agency) needs to keep the reliables available because of the supply gap between what is generated by renewables and the load demand. As a result, operators of the reliables have to run at a substantial loss because their plant is required to operate an non optimum plant efficiency to prepare to accept wind/solar surges; sometimes even paying others to take away excess electrical power. As it’s a federal agency that imposes the operating requirement, splitting off E.On Reliable could make them eligible to compensation for consequential losses under Basic Law.

      Compensation payments mean higher taxes and electricity costs as the subsidy required to provide renewable subsidies bites. Unless the compensation revenue is deducted from the subsidies to the renewable sector.

      1. DirkH

        Good explanation.

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