Despite the growth in renewable power over the past few years, The Breakthrough Institute warns of the coming clean tech crash.  Its thesis:

The clean tech sector is headed for a major crash, as the subsidies required to make clean energy artificially cheaper are becoming unsustainable. Clean energy is still much more expensive and less reliable than coal or gas, and in an era of heightened budget austerity the subsidies required to make clean energy artificially cheaper are becoming unsustainable.   Avoiding future crashes will require reorienting our energy policies to drive innovation, rather than simply deploying existing technologies that can’t compete without subsidy…..In the long-term, however, clean energy must become much cheaper and more reliable if it is to widely displace fossil fuels on the scale of national economies and become a commercially viable industry.

In the past year many countries or regions have had to cut back on their direct and indirect subsides to wind and solar power because of their fragile fiscal situation.  Germany, Spain, France, Italy, the Czech Republic and Ontario (Canada) have all announced cuts to renewable energy sources.  See here and here.

Tags: , ,