Posts Tagged ‘off-shore wind power’

Now Holland cannot afford to subsidise off-shore wind power

November 17, 2011

Most subsidies for the introduction of ¬†uneconomic technologies are in an effort to make them commercially viable. But after 30+ years in the power generation industry I have yet to see a case where this has happened. Instead, subsidies have nearly always been counter-productive. In virtually every case I have seen, subsidies have always been used first to maintain margins rather than to reduce costs. If costs are not reduced then the “indirect” costs for every taxpayer which a subsidy represents eventually end up becoming direct costs for the consumer when the subsidies end.

This is happening to an increasing extent with solar and wind power as subsidies are reduced or withdrawn in the current financial crisis. The costs have then to be borne directly by the consumers and it is not surprising that virtually all countries which have introduced wind power to any extent have seen electricity prices to the consumer increase.

Now it is the turn of the Dutch government to reduce subsidies and pass on the costs directly to consumers.

Reuters reports:

Dutch fall out of love with windmills

(more…)


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