elektra
Platinum Member
The Green Energy bubble fueled by government subsidies in Europe has burst. The USA will not likely follow until the Elections of 2016 when we replace our out of control White House and reign in the Congress which has been authorizing this incredible waste for over a decade.
Spain Halts Renewable Subsidies to Curb $31 Billion of Debts - Bloomberg
Spain Halts Renewable Subsidies to Curb $31 Billion of Debts - Bloomberg
Spain Halts Renewable Subsidies to Curb $31 Billion of Debts
By Ben Sills Jan 27, 2012 8:37 AM PT
Spain halted subsidies for renewable energy projects to help curb its budget deficit and rein in power-system borrowings backed by the state that reached 24 billion euros ($31 billion) at the end of 2011.
“What is today an energy problem could become a financial problem,” Industry Minister Jose Manuel Soria said in Madrid. The government passed a decree today stopping subsidies for new wind, solar, co-generation or waste incineration plants.
The system’s debts were racked up as revenue from state- controlled prices failed to cover the cost of delivering power. Costs have swollen in the past five years because of an increase in regulated payments for the power grid, support for Spanish coal mines and subsidies for renewable energy plants.
“It’s clear they have to make major cuts,” said Francisco Salvador, a strategist at FGA/MG Valores in Madrid. “The government has already ruled out a significant increase in prices, so the cuts will fall in many places and the spotlight is on renewables, but not just on renewables.”
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