Czech
December 8, 2010
The biggest problem is that the winners of the Solar PV Projects are mostly unknown small firms who have bid so low that make the returns negative for investors according to the renewable energy ministry officials (MNRE).Bidding has gone as low as 23c/Kwh which is crazily low considering the debt costs in India are as high as 13% annually.Compare that to China where debt is priced as low as 3-4% and the winners are huge utilities.With even India's Tata Power saying that the projects are not bankable as their is confusion how the electricity tariffs will go to developers,its difficult how these unknown firms could manage the financing .While the companies will lose their bid deposits if they don't finish the projects,Indian Solar Energy will be the biggest loser as the failure of the Phase 1 of JNNSM of 1000 MW by 2013 will lead to even further delays.Already JNNSM has been criticized by a parliamentary panel for the tardy progress.Note some states have taken the lead in pushing solar energy on their own,namely Gujarat which aims to put up more than 500 MW in the next year or two.
October 30, 2010
Planned Czech Solar FIT cuts will heavily favor subsidies to Small Distributed Rooftop Installations
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.
October 14, 2010
1) Tax on Solar Subsidies - The Czech Government which used to give a tax holiday to solar energy revenues will be withdrawn and a new tax rate will be introduced.
2) No more Free Carbon Credits - The administration will generate revenue through selling the carbon credits rather than giving it free to Renewable Energy Producers.This will remove another source of return for solar investors.
3) Rent for Power Plants on Agricultural Lands - The Government also plans to impose a Fee on Solar Power Plants that are built on Agricultural Lands.
Czech is facing a massive economic problem due to the increase in electricity prices at a time of Fiscal Compression.This has been mainly an outcome of huge subsidies being given to the solar energy producers.With almost 1.6 GW of Solar Energy being installed by 2010,the government had no other option than to clamp down and clawback some of the super-normal profits being given to solar investors.
October 7, 2010
Renewable Energy is Easter Europe has boomed driven by government incentives and subsidies.Many of these countries like Estonia,Bulgaria and Czech are cutting or already have cut generous feed in tariffs paid to Green Energy Investors.While Czech has seen an unprecedented Solar Boom leading to a massive public backlash,Estonia and Bulgaria have seen huge wind energy projects.The Green Energy has boomed in the last 2 years mainly as governments in these countries try to meet the Renewable Energy Target of 20% by 2020 set by the European Union.These East European countries have been hit hard by these EU directives as the costs have spiralled
September 14, 2010
Czech is a Poster Boy of how not to implement a Feed in Tariff Scheme.While other countries like Spain,Greece have also faced Solar Booms,the Czech Bubble compared to the size of its Economy has been spectacular.The removal of Tax Benefits will further lower the returns for Green Investors which should probably eliminate the make the Czech Renewable Market next year.
August 27, 2010
Czech Republic came out with a Renewable Energy Framework which will finish off the Solar Sector in the country if passed in the current form.Czech despite […]
May 7, 2010
We all know what happened in Spain in 2008.Due to extremely generous feed in tariffs for solar , installers went on a spree installing 2.5 GW […]