Germany is one of the countries leading the world in the switch to renewable energies. And like other countries that have seen large-scale switches to clean energy, the utilities are taking it in the shorts and crying “uncle.” This includes not only private homes but also the industries in Germany, 16% of which are now off the grid — double the percentage of the previous year. This is cutting into the profits of the utilities, Germany’s mega-utility company, RTE, claiming to have lost $3.8 billion lat year alone. The Swedish utility company Vattenfall, which has large investments in Germany, claims to have lost $2.3 billion last year.
Needless to say, this doesn’t disturb the clean-energy advocates one bit but, more to the point, it should have been seen coming by the energy companies. Germany has been shifting its energy priorities for some time now and it is inevitable that the utility companies would see their profits fall. As a recent story tells us:
When unveiling today’s dismal earnings, RWE’s Terium admitted the utility had invested too heavily in fossil fuel plants at a time when it should have been thinking about renewables: “I grant we have made mistakes. We were late entering into the renewables market — possibly too late.”
To which I simply add: Duhhhhh! One can only ask when Big Oil and Big Coal in this country will climb aboard the clean energy train. In its small way, alternative energies like wind and solar are already making inroads into the profits of the utility companies — in places like Hawaii, for example, as reported recently. And this despite the absence in this country of a clean energy policy and very little Federal support. In fits and starts the switch to clean energy will continue to happen, despite the unwillingness of the Congress to get behind alternative energies and the necessity for private investors like T. Boone Pickens and Warren Buffet, and a few of the states, to lead the way. It will happen. This country will eventually follow Germany’s and China’s lead into the 21st century and if the corporations that blindly push for fossil fuels continue to ignore the handwriting on the wall, their overpaid CEOs will echo the cries of “foul” we now hear from Germany. It’s not rocket science, it’s just good business. One would think that American businessmen who are supposed to be among the best and brightest in the world would realize where their own long-term best interest lies. But, then, business doesn’t teach us much about the long term; it’s almost always about short-term profits. Brace yourself for the coming outcry! Relish it when it comes.
Hugh, great and timely post. We chatted last year that if the energy companies did not act more on alternative energy, they would wake up and see their market share gone. I think we used the term the alternative energy markets would pass them by. Two additional comments to your writing.
First, Duke Energy, in addition to the embarrassing handling of the coal ash spill, is getting some push back from solar energy users when they wanted to charge less for buying surplus electricity from the solar energy users than they charge to sell power.
Second, I read recently, that the wind power potential off the coast of NC could power the entire eastern seaboard of the US. That is a huge statement, yet our GOP led legislature wants to drill for oil offshore, instead.
Keep up the momentum with articles like this. BTG
Great post, I had no idea that Germany was so progressive! If only the US could follow in their footsteps. I also have a blog about energy and pollution, you can check it out here! http://thepowerstrugglepress.wordpress.com/