Investors Are Abandoning Green Energy
Offshore wind projects are being frozen around the world; decisions are being delayed, contracts abandoned, auctions left without bidders and almost no new projects started.
The truth of inflation, the maintenance cost shocks and cable failures are all exposing the scam. There was also the problem of needing a 100 years of copper, nickel and lithium production before Christmas.
“It’s all been kept quiet,” writes Nova. “Who knew there were no offshore wind investments in the EU last year (apart from a few floating projects)?”
Years and years of subsidies were meant to buy wind power enough time to be profitable and competitive all by lonesome, but the reality, some 25 years later, has proven very different. Today, the industry needs even larger subsidies just to survive.
When the inevitable –clearly orchestrated– oil, gas and coal crunch came, wind –and solar– were sold as our savoir from cripplingly-high energy bills and the threat of blackouts.
However, it soon dawned on the schmucks in charge that the wind doesn’t always blow, nor the sun always shine; that turbines, in particular, have exorbitant maintenance costs, and require oil, gas and coal themselves during not only the manufacturing process, but also to run; it hit even the staunchest of investors in such tech –aka ‘the money’)’– that fossil fuels are, quite simply, superior.
“Progress is stalled around the world as nobody wants to admit the real costs,” writes The Telegraph’s Kathryn Porter.
The following passages are lifted from her article dated Oct 10, 2023:
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 – and over US$ 5 billion in 2022 alone.
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.
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.
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$2 billion in costs tied to three US-based projects – Ocean Wind 2 off New Jersey, Revolution Wind off Connecticut and Rhode Island, and Sunrise Wind off New York – that have not yet begun construction, saying it may withdraw from all three if it can’t find a way to make them economically viable.
Meanwhile, projects off New York are asking for an average 48 percent increase in guaranteed prices that could add US$ 880 billion per year to electricity prices in the state.
Follow The Money
The cash is fleeing renewables, the ‘fiddle’ looks to have run its course.
The S&P Global Clean Energy Index, which is comprised of major solar and wind power companies and other renewables-related businesses, is down some 32% this year, most of that in the last three months:
Those investing into this industry now are merely ‘exit liquidity’. And while I expect ‘dumb money’ to continue flowing in for some time, driven in no small part by a bullish legacy media tone, one helped by the paint-tossing alarmists among us, the smart money is already out, and, looking at these numbers, there doesn’t appear to be a chance in hell of it reentering.
Also, as I mentioned them, let’s spare a though for the Great Brainwashed, for those poor catastrophists who have invested their literal lives into this industry. Because as gullible/childish as these serial beclowners are, nobody deserves this level of ‘playing’:
By contrast, the oil and gas-heavy S&P 500 Energy Index has anti-correlated with the ‘clean’ sector, up 287%:
Eclipse About To Test U.S. Solar Grid
As if the economic reality of renewables wasn’t bad enough, US grid operators are set to face “their largest controlled experiment for dealing with big swings in renewable power during this week’s “ring of fire” eclipse,” reports Bloomberg.
Skies will darken on Saturday, October 14, knocking out as much as 28,300 gigawatts of solar generation, the equivalent of one in nine Americans’ homes temporarily going dark as the sun becomes obscured. Grid operators are bolstering backup supplies, and they aren’t expecting any issues; but once again, this is a case of ‘fossil fuels to the rescue’.
The previous total solar eclipse to impact the US was in 2017, and it had minimal impact. According to an analysis of the eclipse, fossil fuels were successfully ramped-up to compensate for the loss.
The issue in 2023, however, is that solar energy capacity in the United States is much higher: three times the capacity of 2017.
The 2023 annular eclipse’s path will begin in Oregon and move southeast, ending in Texas. Along this path, the eclipse will last around two hours total, with peak coverage of the sun lasting up to five minutes.
God has a sense of humor. The route just so happens to cross through a part of the country with high solar energy generation capacity: California, Nevada, Arizona, and Texas. A large swath of West Texas, in particular, has very significant solar capacity.
I, personally, am not expecting any issues. Even though solar energy now accounts for 5% of total energy generated in the U.S. (20% in California), the planned ramp-up of cheap and reliable fossil fuels should prevent any shortfalls.
News that the grid ‘handed the eclipse’ should obviously be framed as a win for fossil fuels, not renewables.
All of this is a needless risk, though. And still it needs saying: if you don’t like fossil fuels–for one reason or another–the only energy source to promote nuclear. But then nuclear risks solving a very profitable ‘crisis’, doesn’t it, so what bloody good is that…
UK Requires Records Volumes Of Norwegian Power To Survive Winter
To finish today’s trifecta of ‘power stories’, recent reports indicate that record electricity exports from Norway will be vital to keeping the lights on in Europe’s second-largest economy this winter, the UK.
An undersea cable from Norway will provide an energy lifeline for the UK on winter days when solar and wind fail to generate enough power, reports Bloomberg. The government is even outlying a “small” risk of shortages in January.
Next year, a second Nordic cable –‘the Viking Link’ from Denmark– will join Norway’s, as Britain desperately attempts to bolster its energy security while simultaneously appeasing Net Zero fantasies (we’ll just outsource our CO2 emissions — very green).
“Norwegian power exports for the UK will be very high all winter,” said experienced Oslo-based analyst, Sigbjorn Seland.
As well as electricity directly via undersea cable, Norway also supplies 30% of the UK’s gas which arrives via pipelines, mainland interconnectors and three LNG terminals.
The UK has to compete with the rest of Europe for Norway’s energy–with the likes of Belgium, the Netherlands and France.
Norwegian energy prices are far lower than those elsewhere in Europe, and given the mainland (and UK) shortages, Norway can charge a premium, too. Furthermore, the country’s dominant generating source, hydropower, has been bolstered by a wet year.
Exports from Norway to the UK will comfortably exceed 10 terawatt-hours in 2023, which is more than triple that of 2022.
The UK’s dependence on Nordic power will be cemented by the opening of the world’s longest interconnector cable from Denmark next year. The €1.6 billion, 765km-long Viking Link will have the same 1.4GW capacity as the existing Norwegian cable.
The UK is determinedly outsourcing its energy. This seem unwise, not least given the acts of sabotage in the region. You of course have Biden’s suspected blowing up of the Nord Stream last September. But just last week, an undersea gas pipeline in the Gulf of Finland was also attacked.