Czech has seen the biggest Solar Growth Explosion compared to its size powered by extremely generous feed in tariffs.This has made Czech one of the top solar installers in the world and led to a huge public backlash.The Czech government has responded by proposing to bust the Solar Energy Bubble by drastically cutting down the Feed in Tariffs.The administration is also trying to reign in the ballooning subsidies from existing solar plants by imposing taxes on solar plants and carbon credits.This is being done as the Czech consumers face a 15-25% increase in electricity prices next year.The country had little option as its very badly designed tariffs had led to a situation where Czech Industry faced the prospect of becoming uncompetitive.

EGP is the 4th company of its kind to supply paper to European investors so the demand is not high.Despite EGP having 44% Hydro Assets and 13% Geothermal Assets which is more than its European competitors dependent on Wind Energy,investors are not convinced.Even the lower band of pricing has seen only 60% demand which means that EGP may have to lower it further.Spain and Italy the home countries of Enel are reducing Feed in Tariffs for Green Energy Sources due to Budgetary Problems.Despite removing the most draconian cuts on Renewable Subsidies,the sword of uncertainty continues to hang over the Green Producers.Investors are also looking for a discount on existing companies in order to make commitments to a new issue.EGP has been trying to do an IPO sine last year and the current bullish market environment in Europe might be the best time for it to clinch the deal.

Although the global financial crisis has pushed governments to sharply cut aid to the renewable sector, it has had little effect on costs in the solar mirror power sector compared with the photovoltaic (PV) sector, which uses solar panels to generate power.

“We’ve see some reduction in prices, but nothing like in the PV sector. Costs per megawatt are between 4 and 5 million but they can reach up to six depending on the kind of power storage system you use,” Seage said.

Sector analysts put the average cost of CSP per megawatt at about 5 million euros before the global financial crisis, about six times more than for conventional gas-fired power generation.

The high cost of CSP makes it unlikely to be competitive with conventional energy until the next decade, and that also depends on reasonable charges for carbon dioxide emissions.

“We see CSP power becoming competitive between 2020 and 2030, depending on a country’s levels of radiation,” Seage said.

Ontario had ample opportunity to learn from past experience and its Renewable Energy Subsidy Policy is on the whole quite good.However one part of the FIT program which gave a very generous 80.2c/KwH to micro installations of solar projects under 10 KW was faulty.It led to 160 MW of project applications which were ground mounted with very high production as they used trackers.There was no discrimination between roof and ground mounted micro installations leading to this problem.Note its not possible to install trackers on roofs which can increase the energy by 30-35%.The large number of applications were not factored in by the Ontario Power Authority (OPA) which proposed to retroactively cut those tariffs by 27% for ground plants.

This almost 30% decline in US yield is due to a combination of factors like expectations of more monetary easing by Fed,deflation worries and disappointing US economic data.In lockstep with the the US Treasury yields,the German bunds have also been rising.The rise in German Bunds is despite very strong German economic data.The German economy expanded at the fastest pace in 23 years on Rising Exports.So the fall in Bund yield is confusing when seen in terms of the US Treasury and Economy relationship

Spain has been in the media spotlight for its proposed retroactive solar subsidy cuts which were strongly opposed by the Solar Industry Association in Spain.These Feed in Tariff Cuts would come on guaranteed electricity payments to solar plants installed during the Solar boom in 2007 and 2008.Pension funds and other financial investors in these renewable […]