Spain Ejects Clean-Power Industry With Europe Precedent

Bloomberg via Yahoo! News ^ | May 30, 2012 | By Alex Morales and Ben Sills

[Oldeconomybuyer]

Spanish renewable-energy companies that once got Europe's biggest subsidies are deserting the nation after the government shut off aid, pushing project developers and equipment-makers to work abroad or perish.

Saddled with a budget deficit more than twice the European Union limit and a ballooning gap between income and costs in its power system, Spain halted subsidies for new renewable-energy projects in January. The surprise move by Prime Minister Mariano Rajoy one month after taking office helped pierce investor confidence in stable aid for clean energy across Europe.

"They destroyed the Spanish market overnight with the moratorium," European Wind Energy Association Chief Executive Officer Christian Kjaer said in an interview. "The wider implication of this is that if Spanish politicians can do that, probably most European politicians can do that."

Spain's power-system debt swelled to 23 billion euros as successive governments set electricity prices for consumers that didn't cover the revenue utilities booked.

[Oldeconomybuyer]

Unexpected.

[NonValueAdded]

Spain's power-system debt swelled to 23 billion euros as successive governments set electricity prices for consumers that didn't cover the revenue utilities booked.

Awwwwww, no more free lunch?

[Paladin2]

Not much of a “market” if it’s completely propped up by gov’t paid, corporate welfare.

[ZX12R]

If you’re gonna be dumb, you better be tough. Idiots.

[PapaBear3625]

Spain doesn’t have the funds to prop up the Greenie industries AND their welfare states. Bye Bye Greenies. The rest of Europe will have no choice but to follow.

[MinuteGal]

"Spain's power-system debt swelled to 23 billion euros as successive governments set electricity prices for consumers that didn't cover the revenue utilities booked."

The brains in Spain stay mainly in the drain.

[the_devils_advocate_666]

Amazed that all the comments I read at the site (Yahoo!) are basically bashing subsidized green energy. Maybe this country is starting to wake up this farce.

[canuck_conservative]

Not much of a “market” if it’s completely propped up by gov’t paid, corporate welfare.

YOU NAILED IT - excellent!!

[mo]

So the adults are finally telling the scamsters to get lost!!

[Rinnwald]

Incoming carpetbaggers! Parasites will always try to find a new host after the old one has died.

Fortunately, our own Obama administration is a stalwart bulkhead against such shenanigans. Having been burned by the Solyndra debacle, they are both older and wiser about new energy scams.