Wind And Solar Are In Huge Trouble
Lack of confidence in the financial future of alternative energy has hurt the valuations of companies in the sector and made it more difficult for them to find funding. This, in turn, has slowed the rollout of solar and wind projects. According to the FT, Sumant Sinha, head of ReNew Energy Global, said, “Public markets are undervaluing clean energy companies and hampering the green transition, as the sector struggles to entice investors.”
Swiss solar module maker Meyer Burger recently exited a large solar panel operation in Germany. It blamed a political environment. Korea’s LG pulled out of the US solar array business. The list of those companies exiting is much longer. Additionally, solar companies in the US and EU say that China dumps solar products into their markets.
Orsted, one of the largest Danish companies has backed out of several wind projects, cut jobs, and cut its dividend. Wind installations are plagued by everything from bird strikes to blade problems. These risks make capital expensive.
Cost Of Renewals Slows Adoption
Climatecrisis247 believes this is hardly the first time this claim has been made. Several companies have withdrawn from the wind energy business because of flaws in the technology. Solar energy projects have suffered because of the amount of sunlight available in many installations. Until some of these issues have been resolved, the enormous costs of renewables will be a drawback.
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