Stop feeding renewable energy beast, urges E.On

June 3, 2014 by  
Filed under Green Energy News

Mr Teyssen has argued that Europe must scrap all “green levies” that are used
to subsidise renewables. He has said he supports such technologies but that
the funding model is wrong and Europe should instead install a proper carbon
price to drive the market to find the most cost-effective ways of going
green.

E.On, like most European utilities, is losing money from its gas-fired power
plants as expansion of renewable energy and cheap coal prices mean they are
only called upon to run for short periods of time. It has already mothballed
some plants and experts warn more closures could leave Europe at risk of
power cuts at times of peak demand when the sun doesn’t shine or the wind
doesn’t blow.

In the UK, the Conserative party has pledged to end subsidies for onshore wind
power if it wins the next election. However, it appears committed to
offshore wind, which is a newer technology but still significantly more
expensive.

The Government has already announced it is closing a subsidy scheme for
large-scale solar farms two years early and take-up exceeded expectations.

Mr Teyssen also warned that the energy industry must do more to attract
employees at a time when some companies were seeing “whole management teams
leaving” and it was “difficult to attract young people to this industry”.
“We have been under fire for years and years,” he said. “We need to rebuild
confidence.”

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