Green subsidies axed to ease Spain's financial crisis

¿Qué?

If you were advising the Spanish government on how to get out of the financial hole they are in, I guess you would say, what is the largest, most pointless waste of money right now? And the answer is:

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.” (source, via GWPF)

When the patatas fritas are down, expensive, unreliable and inefficient “renewable” energy subsidies are the first to get the chop.

Comments

  1. Renata Quinlan via Facebook says:

    Keh?

  2. Jim Ness via Facebook says:

    I wish our government would realize what waste of money they are and put them on the chopping block also!

  3. Lew Skannen says:

    The funny thing is that about two years ago someone in Spanish government noticed that half their solar power was being generated at night. It took a while for the significance of this to sink in but eventually they found that there were huge diesel generators running 24/7 producing ‘solar’ power and feeding it into the grid at huge expense.
    That was just the tip of the iceberg. They now seem to have finally worked out that the entire iceberg is actually a scam.

  4. I thought that this Keynsian stimulus money was good for economies and would spend their way out of recession.

  5. meanwhile we are doubling down on it lol

  6. Bill Hough via Facebook says:

    Oops, Obama take note.

  7. Someone got smart!!! Or maybe I should say used WISDOM.

  8. Can anyone name any schemes anywhere that haven’t closed down after government subsidise have dried up? Solar industry US RIP, Germany largest solar farm left to rot etc

  9. Not long now.

    Maybe a few years till it all comes tumbling down.

    The west is toast while these sorts of decisions are being made, supported, implemented and the problems emminating from them subsequently ignored.

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