German Banks & Investors Banned From Investing In Off Shore Wind Farms
Posted by Tory Aardvark
Germany is in a serious mess with its energy supplies, the German government was stupid enough to bow to the hysterical screams of the Green environmental lobby and shut down all its nuclear power stations.
The Greens rejoiced, prematurely as usual, that nasty bunny bothering reliable nuclear power was gone, Germany would be powered by the Green dream of solar and wind power, what could possibly go wrong?
All of it to be precise.
Just about all of the Green renewables dream has gone down the tubes, a glut of solar panels, cheaper competition from China and cuts in the life blood of renewables, Green taxation on energy bills have killed German solar, stone dead.
In the greed driven rush to grab the Green subsidies, the normally efficient and detail obsessed Germans have built a massive wind farm off Heligoland without any means to connect the wind farm to their national grid.
Tighter fiscal rules in Germany have now killed the off shore wind farm:
The knockout blow for the financing of offshore wind farms is the so-called matching maturities rule which was aggravated to stabilize the financial markets. “Offshore wind farms cannot be financed by anyone. We have just been banned from doing this.”
Next bad news for the German Federal Government: Stricter regulations of the financial markets are endangering the green energy transition.
Everything depends on everything else, it is said forever. But who would have thought that this also applies to the banking regulation and the green energy transition? At a meeting of the Council for Market Economy, supported by the Association of Bavarian Industry (vbw), Commerzbank board member Markus Beumer granted insight into applied political chaos theory.
He doubted that the switch to offshore wind power generation will occur. The dream, he said, was founded on “wind farms that cannot be financed by anyone.” What particularly upset the banker: “We have just been banned from doing this”. The host and President of the Association of Bavarian Industry Randolf Rodenstock commented dryly: “When it comes to the green energy transition, nothing surprises me anymore. If there are no profitable businesses, then the transition will simply not take place.”
The problem with solar and wind power is two fold:
1. Without Green subsidy wind and solar are not financially viable
2. As the sun cannot be guaranteed to shine, and the wind to blow at times of peak demand these forms of renewable energy will always need a back up fossil fuel power station on-line to meet peak demand or the lights go out. Thus wind and solar are always going to be more expensive than the single reliable power generation source and warmist claims of renewables saving the CO2 emissions they so fear, just the usual Green lies because they do not include the CO2 emissions from the stand by power station in their Greenwash.
The knockout blow for the financing of offshore wind farms is the so-called matching maturities, which was aggravated to stabilize the financial markets. Due to this regulation, banks should secure their loans with a refinancing of a similar maturity. After all, in the banking crisis, banks which had borrowed money for long-term loans only for short-term got into serious trouble.
The German financial system now views wind farm as sub prime, how ironical with the Greens calling oil and fracking sub prime investments.
There are longer maturities in the construction business, but there the conditions are different. There, the refinancing is secured via mortgage bonds, and the property stands as security. In an emergency, the bank could recover its money by a foreclosure. For offshore wind farms off the German coast, however, there is no experience how long the giants will last in the mud. As a result, Commerz banker Beumer does not give credit for eco-projects: “Banks cannot take the risks for a non-proven technology.”
There is a lesson that every industrialised country in the world should learn, if you are stupid enough to let Green environmental zealots decide on your mix of electricity generation then prepare for industry to leave and the lights to go out, the future is rolling blackouts.
During the last winter Germany came within an ace of the lights going out, and winter 2012 is looking bleaker for Germany, unless emissions laws are suspended for old coal fired power stations, Germans will be freezing in the dark come the winter.
About Tory AardvarkClimate Realist, Conservative and proud NRA member. I don't buy into the Man Made Global Warming Scam, science is never settled. http://toryaardvark.com @ToryAardvark on Twitter ToryAardvark on Facebook
Posted on May 14, 2012, in Anthropogenic Global Warming, Church Of Climatology, Global Warming, Green Jobs Lie, Green Lies, Green Taxation, Renewables, Social Engineering, Wealth Redistribution, Wind Power and tagged Germany, Off Shore Wind Farms. Bookmark the permalink. 7 Comments.