German Renewable Energy Shift Slowing Down as Large Players Reduce Investments
German Chancellor Angela Merkel is losing her two greatest allies in the renewable energy shift as EON SE (EOAN) and RWE AG (RWE) announced to slash their combined debt and curb costs of $ 88 billion, writes Bloomberg.
After the Fukushima nuclear disaster in March 2011, Chancellor Merkel decided to shut down all nuclear reactors by 2022 and go renewable under the $700 billion program.
“The entire energy switch has derailed,” said Marc Nettelbeck, an analyst at DZ Bank AG, to Bloomberg, since the offshore wind farms are facing delays in connection to the grid.
“The difficulties connecting offshore wind farms to the power grid reduces their profitability and renders the original investment calculations of utilities invalid,” Nettelbeck said.
Last month, E.ON announced it will lower its plans to invest in clean energy from €1.79 billion to less than €1 billion, while RWE said they will cut their renewable energy spending in half to €500 million.
RWE CEO, Peter Terium, said in a statement that the company will try to reduce the investment risk by connecting “one park at a time.”
Offshore WIND Staff, April 5, 2013; Image: BWE