According to a study released this week by European Voice, economic problems and political uncertainty are damaging investors confidence in green energy, which is pulling the European Union short of it’s renewables target for 2020. Investors are looking to China and the US as a result of ‘sudden unpredictable moves’ by European regulators.
The European Wind Energy Association announced that the bloc’s installed wind capacity topped 100GW, but warned that the uncertainty could stall the advances of 10GW a year made of the past 3 years.
Investors are reported to have been made ‘nervous’ by recent regulatory shifts in the EU, such as Germany’s recent decision to phase out subsidies for photovoltaics and similar decisions in Italy, Spain and Portugal.
The EWEA wants to ensure major investment in the European trans-border power grid, as part of a single energy market. “The biggest potential show stopper for us is we need better infrastructure,” said EWEA chief executive Christian Kjaer. He said the EU should to agree on a policy beyond the 2020 to spur further investment.
This was echoed in the European Voice report which said there were concerns in the renewable sector over difficulty in setting renewable energy targets beyond 2020. “In June the European Commission issued a strategy document that failed to answer the question of whether further targets will be set,” it said and warned: “The European Commission will soon come out with guidance for member states on how to administer their subsidy schemes, but many in the renewable energy industry fear it will be too little too late.”