{"id":283132,"date":"2023-10-13T13:44:04","date_gmt":"2023-10-13T11:44:04","guid":{"rendered":"https:\/\/climatescience.press\/?p=283132"},"modified":"2023-10-13T13:44:07","modified_gmt":"2023-10-13T11:44:07","slug":"investors-are-starting-to-abandon-clean-green-energy-as-they-realize-its-never-going-to-be-cheap","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=283132","title":{"rendered":"Investors are starting to abandon clean green energy as they realize it\u2019s never going to be cheap"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

Investing in a green transition will lower electricity prices, free funding from entrenched fossil fuel subsidies and create new jobs all over the world is a myth.<\/strong><\/em><\/p>\n\n\n\n

From JoNova<\/a><\/p>\n\n\n\n

By Jo Nova<\/strong><\/p>\n\n\n\n

\"\"
Image by\u00a0ThankYouFantasyPictures<\/a>\u00a0from\u00a0Pixabay<\/a><\/figcaption><\/figure>\n\n\n\n

Kathryn Porter in The Telegraph,<\/em> has compiled quite the list of failures as offshore wind projects get frozen around the world.  Decisions are being delayed, contracts abandoned, auctions left without bidders<\/a> and almost no new projects started. The awful truth of inflation, the maintenance cost shocks<\/a> and cable failures<\/a> is all too much. Then there was the problem of needing a 100 years of copper, nickel and lithium production <\/a>before Christmas.<\/p>\n\n\n\n

It\u2019s all been kept quiet. Who knew there were no offshore wind investments in the EU last year, apart from a few floating projects?<\/p>\n\n\n\n

After years of subsidies, wind power was meant to get cheap enough to be profitable and competitive all by itself, instead, 25 years later, it just needs bigger subsidies. When the great oil and coal price crunch came, wind power was supposed to rise through the ashes, instead we discovered that wind turbine and battery factories needed cheap coal and oil like the rest of the economy.<\/p>\n\n\n\n

Right now Australia has no offshore wind turbines and is about to jump onto a burning ship:<\/p>\n\n\n\n

The myth of affordable green energy is over<\/a><\/h3>\n\n\n\n

Kathryn Porter in The Telegraph,<\/em><\/p>\n\n\n\n

Progress is stalled around the world as nobody wants to admit the real costs<\/strong><\/p>\n\n\n\n

Turbine manufacturers have been losing money hand over fist in recent years. Collectively over the past five years the top four turbine producers outside China have lost almost US$ 7 billion \u2013 and over US$ 5 billion in 2022 alone.<\/p>\n\n\n\n

But the losses have also been driven by pricing structures designed to win market share, and aggressive windfarm developers who have refused to pay up, often while pocketing billions in subsidies. The market has started to look, if not like a Ponzi scheme, then like a house of cards built on the shakiest of foundations.<\/p>\n\n\n\n

Offshore wind projects have been drying up around the world. During the whole of 2022 there were no offshore wind investments in the EU other than a handful of small floating schemes. Several projects had been expected to reach financial close last year, but final investment decisions were delayed due to inflation, market interventions, and uncertainty about future revenues. Overall, the EU saw only 9 gigawatts worth of new turbine orders in 2022, a 47 percent drop on 2021.<\/p>\n\n\n\n

Over in the United States, despite the massive support offered by the Inflation Reduction Act, windfarm projects are also struggling. Orsted, the global leader in offshore wind, has indicated it may write off more than US$2 billion in costs tied to three US-based projects \u2013 Ocean Wind 2 off New Jersey, Revolution Wind off Connecticut and Rhode Island, and Sunrise Wind off New York \u2013 that have not yet begun construction, saying it may withdraw from all three if it can\u2019t find a way to make them economically viable.<\/p>\n\n\n\n

Meanwhile, projects off New York are asking for an average 48 percent increase in guaranteed prices that could add US$ 880 billion per year to electricity prices in the state.<\/p>\n\n\n\n

Investors are starting to run<\/h3>\n\n\n\n

The\u00a0S&P Global Clean Energy Index\u00a0<\/a>is down by 30% this year and most of that is in the last three months:<\/p>\n\n\n\n

\"\"
S&P Global Clean Energy Index<\/a><\/figcaption><\/figure>\n\n\n\n

The S&P Global Clean Energy Index, comprised of major solar and wind power companies and other renewables-related businesses, has lost 30 per cent in 2023, with nearly all of the decline since July.<\/p>\n\n\n\n

By contrast, the oil and gas-heavy S&P 500 Energy Index is up slightly this year.<\/p>\n\n\n\n

In the last three years the real S&P energy sector is up 287%<\/a>\u00a0(white line below), but the\u00a0clean<\/em>\u00a0energy sector (the green line) is down 32%.<\/p>\n\n\n\n

\"\"
Energy Sector Index growth (white) compared to the Global Clean Energy Sector (green) in the last three years.<\/figcaption><\/figure>\n\n\n\n

\u201cThe energy sector has been the best-performing market segment<\/a> so far this month, with oil prices surging 30%<\/a> over the past three months.\u201d \u2014 Globe and Mail<\/em><\/a><\/p>\n\n\n\n

Yahoo Finance graphs the extraordinary growth of the S&P 500 Energy Index since 1994<\/a>.<\/p>\n\n\n\n

Thanks to\u00a0NetZeroWatch<\/a><\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Investing in a green transition will lower electricity prices, free funding from entrenched fossil fuel subsidies and create new jobs all over the world is a myth. From JoNova By Jo Nova Kathryn Porter in The Telegraph, has compiled quite the list of failures as offshore wind projects get frozen around the world.  Decisions are being delayed, […]<\/p>\n","protected":false},"author":121246920,"featured_media":283141,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"Investing in a green transition will lower electricity prices, free funding from entrenched fossil fuel subsidies and create new jobs all over the world is a myth.","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691823592,691823591,691819565,691818299,691823593],"class_list":{"0":"post-283132","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-clean-green-energy","9":"tag-investors","10":"tag-offshore-wind-projects","11":"tag-subsidies","12":"tag-turbine-manufacturers","14":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/mfrack_realistic_photo_of_solar_energy_market_75b1638c-1ab3-402a-8600-63cc6da72bc5.webp?fit=1456%2C816&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1bEE","jetpack-related-posts":[{"id":389556,"url":"https:\/\/climatescience.press\/?p=389556","url_meta":{"origin":283132,"position":0},"title":"Clean Power 2030 projects risk becoming stranded\u00a0assets","author":"uwe.roland.gross","date":"18\/07\/2025","format":false,"excerpt":"Reform\u2019s Richard Tice has written to green energy bosses warning them that a Nigel Farage-led government would terminate green subsidy contracts associated with Labour\u2019s Clean Power 2030 agenda. 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