New Energy As A Power Market Player
Wind Energy Feels the Force of World Markets; Vestas shares plunge and another question mark is raised over the profitability of green energy.
Anna Hirtenstein, November 9, 2017 (Bloomberg News)
“Vestas Wind Systems A/S lost about a fifth of its stock market value after the Danish company said it was squeezing less profit out of sales of equipment and services compared with a year ago because of increased competition…For skeptics in the energy industry, this provides fuel for their old argument that renewables just don’t make enough money. But the change in fortunes more reflects a formerly niche industry that relied on government support for so long and is now having to fight its own corner against the market forces of capitalism…Green technology such as solar panels and wind turbines are increasingly mass-produced, so basic supply-and-demand economics dictate that they get cheaper…[R]enewable energy is being installed in just about every corner of the world. But rather than governments fixing the price of clean electricity, they're now letting the market find it…Developers must now compete against each other to win the right to build projects. The switch to such auctions has sent prices for power from onshore wind down as much as 60 percent and solar by half in some markets…” click here for more