Engie (French electric) to develop 300 MW of wind energy across 9 wind farms in Spain,investing $350 million,without support of Government,only European energy co. doing it.Vattenfall(Swedish power co.) will build a 700 MW offshore wind farm,1st without any subsidy,in Netherlands.Governments subsidize renewables,for environmental benefits. In Germany, in auction , the federal grid regulator accepted four bids for a total of 1,490 MW of offshore wind capacity in the North Sea, with an average subsidy rate of €0.44 per kilowatt-hour.
Engie (French electric utility) said that it will develop 300 megawatts(MW) of wind energy across nine wind farms in Spain, investing $350 million (€300 million).
It is without the support of Government.It is the only European energy company doing it.
Vattenfall (Swedish power company) said in March, it will build a 700 MW offshore wind farm, first without any subsidy, in the Netherlands.
In Germany, in auction , the federal grid regulator accepted four bids for a total of 1,490 MW of offshore wind capacity in the North Sea, with an average subsidy rate of €0.44 per kilowatt-hour. That’s low, because one of the bidders, the Danish wind energy firm Dong (now Ørsted A/S), submitted zero subsidy bid.In Europe, there are about twelve solar projects without subsidy, see chart below: :
The renewables can survive without subsidies now. Around the world fossil fuels got and still get subsidies.
When the sun sets or the wind stops blowing, its generators have to be integrated on the grid and compensating for them, it costs. Renewable power providers pay for some of this, but the remainder is passed on to utilities or government pays for it.
Governments subsidized renewables, firstly for environmental benefits. With no such support, it would be harder to finance projects and with low progress to bring down greenhouse gas emissions from the energy sector. Renewable energy’s market share would still grow but not fast enough to have better change in climate.
One element of the American renewable energy experience is gaining ground in Europe, namely the use of power purchasing agreements (PPAs) with utilities to buy electricity at a fixed price for years at a time.
In Europe you have unsubsidized [photovoltaic solar] developers who want to have long term contracts. In Spain, Italy you can't enter into corporate PPA unless you are registered distributor. Hence developers are signing short-term contracts with energy traders. Still, the fact that renewable energy project developers aren’t counting on subsidies, as new development, has made global price drop, in wind and solar generation. Ref. : https://www.vox.com/2018/5/30/17408602/solar-wind-energy-renewable-subsidy-europe --- Dated: May'30,2018