Europe, Renewable energy project

Engie which is the French electric utility has announced on last week that it is going to developed about 300 megawatts of wind energy which are spread across nine wind farms that are situated in Spain which are backed by $350 million in investment.

During March, the Swedish power company Vattenfall has announced to win its bid to build a 700 MW offshore wind farm which is in the Netherlands, and it would be the first non-subsidized wind energy project in the windmills.

Germany has done the country’s first competitive power auction during the last spring, and the federal grid regulator has accepted about four bids for the total of about 1,490 MW offshore wind capacity which is in the North Sea. The average subsidy rate of is €0.44 per kilowatt-hour, and it is very low. This is because of the bidders like Danish wind energy firm Dong who has submitted its bid with a subsidy rate of zero.

All these things which are happening in the country show the evidence of the major renewable energy projects which can take off without any financial boost from the government. It is the great timing as the European Union is now looking to phase out subsidies for the renewable energy and these policies have become expensive with an explosion of wind installations which are carried across the continent.

The recent project which is announced usually doesn’t quite refute the claim in which the renewables cannot survive without subsidies. According to the Simon Evans, he wrote that to overcome all the higher cost of financing the subsidy-free schemes is one hurdle and while managing the variable renewables on the grid is another. The government must have weighed the appeal of hoping in the market as it delivers zero-carbon electricity.

 

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