Salient to Investors:
Marc Nettelbeck at DZ Bank said the entire energy switch has derailed – the difficulties connecting offshore wind farms to the power grid reduces their profitability and renders the original investment calculations of utilities invalid.
Marc Oliver Bettzuege at Cologne University said the offshore expansion in Germany is much slower than anticipated by politicians, and without a focus on wind from financially strong investors such as EON and RWE, Germany will need to import a large amount of clean power to reach its goals.
Chris Rogers at Bloomberg Industries said the decision to rein in spending is not anti-renewable, just focusing on best projects, but the prioritization is not helpful to Merkel’s energy policy, which is not doomed, but may struggle to attract investors as cash-strapped utilities invest in fast-growing markets such as Brazil and Turkey.
Read the full article at http://www.bloomberg.com/news/2013-04-04/merkel-losing-allies-in-700-billion-shift-to-renewable-energy.html
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