Spain’s Renewable Energy Disaster Draws to a Close
Spain has been held up by the gullible and naïve (some might say, cynical and malign) hard-green-left as the model for our “new” energy future. Some “model”!!
The Spaniards have thrown 100s of billions of euros in subsidies at solar and wind power, and have achieved nothing but economic punishment in return.
The power generated is delivered at chaotic, random intervals: the sun sets every day and the wind stops blowing, just like everywhere else in the world; requiring 100% of wind and solar capacity to be matched by fossil fuel generation sources.
As a result, in the last decade, the true cost of power has spiralled out of control. However, the Spanish government used price caps in an effort to keep prices artificially low. But that simply left taxpayers with an even greater burden to cover the massive cost of renewables subsidies (which represent a state-mandated transfer from the poorest to the richest) – add mounting government debt used to keep the subsidy stream flowing – and it can be fairly said that Spain’s energy policy is nothing short of an economic disaster.
The much touted promise of thousands of so-called “green” jobs never materialized. No surprises there. Instead, the insane cost of subsidising wind and solar power has killed productive industries, with the general unemployment rate rocketing from 8% to 26% (and still rising) – youth unemployment is nearer to 50% in many regions.
The Spanish government is faced with a choice between salvaging what’s left of a moribund (and shrinking) economy and keeping the renewables gravy train rolling.
Here are two reports on Spain’s belated efforts to bring its renewable energy disaster to a close.
Spain close to approving new renewable energy rules: minister
Reuters
29 May 2014
MADRID (Reuters) – The Spanish cabinet could approve on Friday a law that will cut renewable energy subsidies as part of a drive to reduce a 30 billion euro ($41 billion) power tariff deficit, built up during years of keeping prices below regulated costs.
The new law, the thrust of which was announced by the government in July last year, set the rate of return for existing renewable energy facilities at 7.4 percent and at 7.5 percent for future operations.
Many renewable energy companies have made double-digit returns on investment under hefty subsidies. Spain has passed a series of measures over the past two years cutting, and in some cases eliminating, renewable energy subsidies and a number of investors have filed international legal complaints.
“(The decree) is ready to go,” Industry Minister Jose Manuel Soria told reporters on Thursday, adding that the decision to approve it at Friday’s weekly cabinet meeting would be taken later on Thursday.
The minister acknowledged the reform was bad news for companies that invested expecting higher returns.
According to documents annexed to the reform, to which Reuters had access last week, the government plans to cut renewable energy subsidies by 15 percent this year to 7.63 billion euros.
The new rules will be retroactive to July 2013 and many companies have already made massive provisions and writedowns in their 2013 financial results, anticipating the impact of the decree.
The regulation includes variations for a range of technologies – including wind, thermosolar, photovoltaic and biomass – and the year the assets were installed.
For example, assets installed before 2005 will receive no subsidy and will only be awarded with the wholesale power price, while newer assets will receive the wholesale price plus a separate remuneration.
(Reporting by Jose Elias Rodriguez, writing by Tracy Rucinski; editing by Julien Toyer and Keiron Henderson)
Reuters
Spanish Lesson For Obama: Green Energy Transition Unaffordable, May Soon Crash
Die Welt
Ute Müller
31 May 2014
Lawsuits may force Spain to bring its renewable energy experiment to an end, a green policy fiasco that has gone terribly wrong due to astronomical costs. It’s a powerful lesson for the White House that has often cited the Spanish model as one to emulate.
Only recently, Spain was widely praised as the champion of wind energy in Europe. What is more, all over the country new solar parks were built and renewable energy had become the main source of energy supply on the Iberian Peninsula. Those days, however, may soon be over. That’s because Spain’s industry ministry intends to drastically cut back on subsidies for “clean energy.” The whole country has to cut back, the industry ministry argues drily, and energy producers have to do too.
This argument seems irrefutable since the figures that are now assessed by the government are astronomical indeed. The subsidies that are going to flow into green energy projects on the Iberian Peninsula amount to a staggering 200 billion euros. Approximately 56 billion euros have already been paid out. The lion’s share of this sum went into rather generous feed-in tariffs for wind and solar energy which, since 1995, have attracted numerous investors from both home and abroad.
The remaining 143 billion euros are due to be paid out in the next 20 years for green energy projects that have already been connected to the grid, foremost for solar farms.
Given these sums, it would appear that industry minister Jose Manuel Soria has come to the conclusion that the only option left is to put his foot down. He now plans to cut green subsidies for the energy sector by about 20 percent, to 7.5 billion euros per annum. The minister, however, has not reckoned with affected green investors who are up in arms and fighting the planned subsidy cuts.
Moratorium on new solar farms
This is not the first time that Spain intends to take advantage of solar investors retrospectively. Numerous foreign investment funds, especially from the US, have invested heavily in Spain’s renewable energy in recent years, expanding solar energy production significantly. They were lured by promises by the then socialist industry minister who had agreed a fixed rate of return of 14 percent per annum for solar park investments.
“The sun can be yours,” huge billboards claimed. Thousands of Spanish investors were keen not to miss this golden opportunity either. As a result, solar power production on the sun-drenched Iberian Peninsula increased from 53 to 313 gigawatt hours (GWh) between 2007 and 2010.
Surprised by the huge demand, the government of socialist Prime Minister José Luis Rodríguez Zapatero introduced a moratorium for new solar farms, guaranteed feed-in tariff were reduced to 25 years and the premiums were paid only for a certain number of hours of sunshine per year. After a change of government at the end of 2012, the new conservative administration upped the ante and introduced a new electricity tax of 7.5 percent, causing the profits for the solar industry to fall by around 30 percent.
A good opportunity for nuclear power?
This week, U.S. energy company Nextera Energy has summoned Spain before the International Centre for Settlement for Investment Disputes (ICSID) to demand redress. The U.S. company regards the new rules as a retroactive change to the original guarantees. Nextera Energy has invested heavily in the Spanish solar power plant Termosol.
Other large investors, such as a Deutsche Bank investment fund, involved in the Andalusian power plant Andasol, and French bank BNP have asked ICSID, a World Bank organization, for arbitration. Another group of foreign investors issued first lawsuits in 2011, based on the European Energy Charter which promises investment protection and prohibits expropriation.
If the investors win their case, Spain can expect claims for damages amounting to billions of euros. In such a case, the further expansion of renewable energy in Spain would then come to end end at once. The industry minister is not the only one who is aware of the potential consequences. Two traditional power generators, Endesa and Iberdrola, even see a good chance for new deals with nuclear power. They have requested an extension of the operating license for the Garoña nuclear power plant which had already been taken off the grid. Garoña is now expected to provide electricity until 2031. The investors believe that despite new security investments the nuclear power plant will be profitable. They expect that after the boom and bust of recent years the share of renewable energy will decline.
Die Welt (translation by Global Warming Policy Foundation)
Spain provides the perfect “model” for any Country looking to destroy itself in blind pursuit of “green” energy ideology.
Trying to power a (notionally) first world economy with intermittent and unreliable wind and solar power is nothing more than an infantile delusion. When the cost of the insanity is borne by millions of struggling (and probably unemployed) power consumers and 100s of thousands thrown on the unemployment scrap heap, it borders on the criminal.
Spaniards can only hope that their political betters’ efforts to unwind the mess haven’t come too late.
"Mothers Against Wind Turbines™" Phoenix Rising... 
Reblogged this on Tallbloke's Talkshop and commented:
Subsidies and government controlled energy prices – a toxic mix for Spain’s economy.
Force majeure: at a governmental level, the subsidies cannot be maintained.
Corporations can use this concept. So could a government.
I agree Doug, and I am sure, if the Tories are elected, we will see that happening, whenever possible! 😉
Reblogged this on I Didn't Ask To Be a Blog and commented:
“[T]he insane cost of subsidising wind and solar power has killed productive industries, with the general unemployment rate rocketing from 8% to 26%”
So much for the Green Energy Lie, Green Jobs. The handful of Wind Turbine construction jobs, are gone as soon as they throw up the useless machines!
Pingback: Climate News – June Edition |
As people become educated about this scam, there will be trouble. The governments are going to wreak havoc!
Hi there, You have done an excellent job. I will definitely digg it and
personally suggest to my friends. I am confident they’ll be benefited from this site.
Thank you Jamika! Love the positive feedback, and thrilled to have you on board! Shellie
Spotted this at Tallblokes talkshop, good report, If this is the Ecoloons idea of the future, I want them off of my boat!
I must reblog this pg
Agree with all the above yet Australia does not seem to have listened to the experts who have warned us of the inevitable failure of the Greens & Lefty policies & rantings about the apparently rosy future of so called green energy. What is the matter with our Pollies, are they all mad????
This design is steller! You obviously know how to keep a reader amused.
Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Wonderful
job. I really loved what you had to say, and more than that, how you presented
it. Too cool!
Thank you so much! Comments like yours, keep me motivated…..and happy! Please, enjoy! 😉
I got this website from my buddy who shared with me about this web site and now this time I am visiting this web site and reading very informative content at this place.
Thank you for your support Dillon! Love to hear that you are enjoying the website! Positive feedback is very inspiring!
I was suggested this website by way of my cousin. I’m no longer sure
whether this submit is written via him as no one else recognise such
designated about my problem. You’re incredible!
Thanks!
Thank you, Shark Attacks! I appreciate your comments, and I am very happy, that you enjoy the articles!
What’s Happening i’m new to this, I stumbled upon this
I have found It positively useful and it has aided
me out loads. I’m hoping to give a contribution & aid different
customers like its aided me. Good job.
Thank you very much Bart. I have spent a lot of time and effort to produce this blog, and I am thrilled that
you enjoy it. I try to keep on top of all information, relevant to the energy, and political issues!
I do not know whether it’s just me or if perhaps everybody else experiencing problems with your website.
It appears like some of the text in your posts are running off
the screen. Can somebody else please comment and let me know if this
is happening to them too? This could be a issue with my browser because I’ve had
this happen previously. Thank you
It is working fine for me Superfast. I am not sure why it is giving you a hard time, Shellie
Woah! I’m really enjoying the template/theme of this blog.
It’s simple, yet effective. A lot of times it’s very difficult to get that “perfect balance” between superb usability and visual
appeal. I must say you’ve done a very good job with this.
Also, the blog loads extremely fast for me on Internet explorer.
Excellent Blog!
Thank you so much for your words of encouragement. It is a labour of love for me, I want to protect my son, and all of our children, from the insane policies of our corrupt governments.
What’s up, after reading this remarkable piece of writing i am also happy to
share my knowledge here with colleagues.
Thanks for a marvelous posting! I truly enjoyed reading
it, you may be a great author. I will make sure to bookmark your blog and may come back from
now on. I want to encourage that you continue your great posts, have a nice weekend!
Thank you very much Jaclyn. I am so glad you enjoy the posts. You can “follow” the blog, and posts will be delivered to your inbox, if you like! Love to hear from you, Shellie
Hi my friend! I want to say that this article is amazing, great written and come with approximately all
vital infos. I would like to see more posts like this .
Thank you Helen! So happy that you’re enjoying the posts! I will try top keep them coming! 😉
An intriguing discussion is worth comment. I
think that you need to publish more about this subject matter, it
may not be a taboo subject but usually people don’t talk about these
issues. To the next! Cheers!!
Thanks so much Adalberto, we will continue to post as much relevant information, as we can! People deserve to know the truth, and the main stream media refuse to print it!
Right here is the right blog for everyone who really wants to understand this topic.
You understand so much its almost tough to argue with you (not that I actually would want
to…HaHa). You certainly put a new spin on a subject
which has been discussed for ages. Excellent stuff, just great!
Thank you so much, Agustin! We are delighted to share!
Hello very cool site!! Guy .. Beautiful ..
Wonderful .. I’ll bookmark your blog and take the feeds also?
I am glad to seek out numerous useful information here in the post, we want
develop extra strategies in this regard, thanks for sharing.
. . . . .
Hello, its good piece of writing regarding media print, we all understand media is a enormous source of
data.
Thank you Elsa!
Right here is the perfect web site for everyone who wishes to find out about
this topic. You realize a whole lot its almost hard to argue with you (not that
I actually would want to…HaHa). You definitely put a new spin on a topic which has been discussed for a long time.
Great stuff, just wonderful!
The mistake being made is to measure wind energy on how much of it is produced and count that as its contribution. The real measure is what contribution the energy produced makes. The answer to that is that wind cannot be used on its own and is therefore a useless form of electricity generation. Adding something useless to something useful increases the overall cost, diminishes the quality of the original produce and damages the environment or the consumer. This simple question was never asked and never answered. No wind energy = Nil contribution for wind. 100% wind with no conventional generation = zero contribution for wind (cant use 100% wind) Question, at what level of wind does it’s contribution optimize?
They never address that question. The answer is wind never makes a contribution.
You are absolutely right Val. If they had the courage to do a cost/benefit analysis on wind energy,
it would show in no uncertain terms, that the whole renewables fiasco, is a drain on our economies,
and has no benefit to our environment, whatsoever!
It is impossible to provide what is needed for our society’s future when untold billions are being funneled off by our corrupt leaders to the promoters of these despicable wind turbines. “Green energy” just happens to be one slice out of this rotten pie.
Think of the educations, the services, the quality of life, the infrastructure needing replaced, and jobs lost because they have been forced to purchase an industry product/concept that can not possibly deliver what has been promised. This is also a product 30 year anchors attached because of the energy purchase and lease agreements
If you happen to ask, they will proudly boast that we live in a free enterprise system with free markets.
You’re absolutely right, Jim. We are becoming a socialist/communist run World, more and more every day. The Lefties want all the masses to be as poor, uneducated, and compliant as they can make us.
People need to read about the United Nation’s Agenda 21. Many are so afraid of the truth, that they refuse to accept that Agenda 21, is real, and is already being implemented. Faux-green energy is just the tip of the iceberg. A way to “redistribute” wealth, on a monumental scale. The ones at the top of the “pyramid”, are getting filthy rich, while the working classes’ struggle to survive, becomes more difficult each year! I began my research, to learn about wind turbines, and renewable energy, but that issue is entangled in so many others, that I had to branch out, and include far more information, and issues, than I had first intended. The environment is a facade, as it was for Hitler. Domination and control over the world’s populations, is what their goal is. Educating the public, is the only chance we have, to stop this from continuing to it’s unpleasant and intolerable fruition!
I like the helpful information you supply to your
articles. I will bookmark your blog and test again here frequently.
I am reasonably certain I’ll be informed plenty of new stuff right here!
Best of luck for the following!
Thank you Jeanne. You’re welcome back any time!
Hello to all, the contents present at this site are actually awesome for people experience, well, keep up the good work fellows.
Great beat ! I wish to apprentice while you amend your website,
how can i subscribe for a blog site? The account helped me a acceptable deal.
I had been a little bit acquainted of this your broadcast offered bright clear concept
Thank you Verna, It’s a WordPress blog, easy to get, and easy to use!
For latest information you have to visit web and on internet I found this site as a
best web site for hottest updates.
Hello there! This is kind of off topic but I need some guidance from an established blog.
Is it hard to set up your own blog? I’m not very techincal
but I can figure things out pretty quick. I’m thinking about
creating my own but I’m not sure where to begin. Do you have any tips or suggestions?
With thanks
It’s very simple with WordPress. They give you step by step instructions, and you learn more and more, as you go along. Check it out! It’s free!
Stunning quest there. What happened after? Take care!
Great article. I am facing some of these issues as well..
Hi, this weekend is fastidious in support of me, since this time i am reading this wonderful educational paragraph here at my residence.
I am so glad you are enjoying the posts. Come back any time! 🙂
My family members always say that I am killing my time here
at web, however I know I am getting familiarity all the time by
reading thes pleasant content.
As long as you are learning, time is not wasted! 😉
Fantastic website you have here but I was curious
about if you knew of any discussion boards that cover the same topics discussed in this article?
I’d really love to be a part of online community where I can get advice from other
knowledgeable people that share the same interest. If you have
any suggestions, please let me know. Thanks!
I don’t know of any off-hand. I do go on twitter and facebook, for interaction with like minded individuals.
If you have any questions, feel free to e-mail me ….shelliecorreia@gmail.com
Heya i’m for the first time here. I found this board and I find
It really useful & it helped me out a lot. I hope to give something back and aid others like
you helped me.
Thank you so much, Casimira, welcome back, any time!
Fascinating blog! Is your theme custom made or did you download it from somewhere?
A theme like yours with a few simple tweeks would really make my blog jump out.
Please let me know where you got your theme. Many thanks
One of the many themes available from WordPress. You can choose from their options, or customize your own blog! Good Luck!
It’s difficult to find educated people on this topic, but you seem like you know what you’re talking about!
Thanks
Thank you Penni! Delighted to have your support!
If some one needs expert view about blogging then i recommend him/her
to go to see this weblog, Keep up the nice work.
I truly appreciate your kind words Jacquie! Thank you!
After going over a handful of the articles on your site, I
truly like your way of blogging. I saved it to my bookmark website list and will be checking back soon. Take
a look at my website as well and tell me your opinion.
Thank you Andrew! Will do!
I am in fact thankful to the owner of this web page who has
shared this fantastic post at here.
Thank you, I appreciate your support!
Today, I went to the beachfront with my children. I found a sea shell and gave it to my 4 year old daughter
and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed.
There was a hermit crab inside and it pinched her ear.
She never wants to go back! LoL I know this is completely
off topic but I had to tell someone!
Sometimes you just feel the need to share with someone! LOL! I hope your daughter forgets, and decides to give the beach another chance! 😉
This design is spectacular! You definitely know how to keep a reader entertained.
Between your wit and your videos, I was almost
moved to start my own blog (well, almost…HaHa!) Excellent job.
I really loved what you had to say, and more than that,
how you presented it. Too cool!
Thank you Devon….your support is very much appreciated!
Magnificent goods from you, man. I’ve understand your stuff previous to and you’re just too wonderful.
I actually like what you’ve acquired here, certainly like what you’re saying and the way in which you say it.
You make it enjoyable and you still care for to keep it sensible.
I can not wait to read much more from you. This is really a wonderful website.
Your kind words are much appreciated. Visit often! 😉
Remarkable! Its truly remarkable paragraph, I
have got much clear idea on the topic of from this post.
Pingback: The renewable scam: a never ending story | Catallaxy Files