Saturday, 1 February 2014

The truth about Germany's green capitalism: In spite of huge government subsidies (at least) half of the commercial wind parks are not profitable

A new study by Werner Daldorf, head of the Investment Committee at the German Wind Energy Association, confirms that not even the huge government subsidies - several times the market price - make German wind parks profitable:

But newly released numbers, collected and analyzed over a several-year period, show what disappointed investors have long surmised: Around half of these commercial wind park enterprises are doing so poorly that investors can count themselves lucky if they even get their initial investment back after the 20 year duration. --

Over time, Daldorf has collected a vast amount of material, filling shelves and shelves of binders. Taken together, it allows for an unprecedented look at the business affairs of over 170 commercial wind parks over the course of more than 10 years.
The result is sobering. On average, investors have received an annual return of just 2.5 percent. "Over the course of 10 years, that means a return of 25 percent, while according to the prospectus they were to have already seen returns of between 60 and 80 percent," Daldorf says.
Even if returns were to increase dramatically in the coming years -- a possible result, for example, of funds paying down their debts -- only wind parks in the best locations are likely to prove profitable. The picture becomes even worse once one digs into the details. A fifth of all wind parks for which more than 10 years of annual reports are available haven't once paid their investors a dividend exceeding 2 percent of their investments. --

Daldorf's findings are surprising given the substantial subsidies the state has provided to renewable energies over the years. The guaranteed feed-in tariff for a kilowatt hour of electricity generated by a renewable energy technology currently averages 17 cents. That is several times the market price. Indeed, generous state support is one reason that green investment vendors continue to advertise using slogans such as "You Too Can Profit from the Energiewende," as Germany's switch from nuclear power to renewables is called.

Read the entire article here

The German example should be a warning to all other countries, where "green" governments use taxpayers' money to subsidise these ineffective, bird killing, landscape destroying monsters. Green capitalism is not what its promoters claim it to be.

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