European history has been defined by one constant – energy, while this is applicable to all societies, the continents history is littered with examples of States and Armies failing for lack of energy, from Napoleon to Hitler. The only European country that is a net energy exporter is Norway, so a consensus was easily reached, once 2 key pieces fell in to place. The energy crisis of the 1970’s awoke a new generation that this was not just a historical quirk. This coincided with the growth of Green politics, especially in Germany and Denmark. Necessity and ideology came together, with a common goal in mind – domestic energy security.
The challenges that faced the renewable energy sector in America, namely the Kilowatt cost not being competitive in relation to other energy sources. At current prices, Solar is approximately 3 times the cost of Gas Electric. This has been a barrier in America. In Europe, where the North Sea is the only significant Oil province, energy security trumps cost.
Renewable Energy Status in Spain
So where stands the European renewable sector at the moment. Spain as a whole has met its target of generating 30% of its electricity needs from renewable energy sources by 2010, this primarily being generated by Wind. Spain encompasses the story of renewable energy in Europe over the last 5 years. In 2007 it was Europe’s leading destination for sector investment. Reaching 15% of its energy needs by 2010 and being on target for 40% by 2020. However the economic crisis has hit Spain harder than most countries and Government support for the area is being hit by the funding and sovereign debt crisis that has swept the continent. So funding is being re-allocated away from renewable towards paying back debt.
Solar energy only represents 1% of energy in Europe, yet Spain alone has invested €23bn in the Photovoltaic sector, a ? of that in 2008 alone. The main challenge has been the high cost of energy conversation. In Europe the use of feed-in tariffs which guarantee that producers receive fixed wholesale prices, usually defined for 20 year periods. The estimated cost of these subsidies is to hit €6.3bn. So it is no surprise that it is being cut, where the shock came was when the Spanish Government announced that that they will reduce subsidies retroactively by 30%. The key concern here is that it will frighten off investors going forward. While in Europe the debt crisis is making renewable energy a target for cutbacks, the U.S. market is enjoying a more favourable regime, under the Green friendly Obama and the stimulus packages that have fast tracked funding to the Green sector to encourage job growth. In a paradoxical way both America and Europe are aiming for the same target but taking completely opposite routes. One common thread is that in both cases, the actions are motivated by economic necessity. While in both cases there is a political motivation as well, that is natural, stabilizing the economy and promoting job growth are always prominent concerns for Governments.
Projections Of Renewable Energy
I see the renewable sector in Europe retrenching back in to Wind, exploring new opportunities in Wave energy (especially in Ireland and Scotland) and turning a more cautious eye on solar energy. The high price of oil, even in the worst global turndown in 70 years has solidified public opinion behind renewable energy. One only has to remind sceptics that if the boom had continued, that the demand for oil have continued to accelerate – 150 dollars a barrel as the new norm.?
About the Author: Renewable Energy has always excited me, the freedom that it offers to countries and the opportunity to restore power generation to the wider public rather than select companies – Tom Stadler.
Video of Renewable Energy in Spain
Welcome to the site. This is Hopkin Joseph. A 53 year old electrical planner from .
