The last years, wind and solar power have been growing at an incredible pace. People believed that the green-minded Obama administration would accelerate the growth, but because of the credit crisis, the opposite is happening.
Factories buildings parts for these industries are feeling a wave of layoffs. Trade groups are unlikely to install this new equipment, to get more subsidies and help from the government. This during a period that the prices for wind turbines and solar panels are falling.
People believed these new industries were bulletproof, but recent research made us believe that it isn’t the case. Even the best places in the world in case of wind farms, are announcing a cut of 20% because of falling sales.
The energy crisis caused big troubles for the Wall Street banks. 18 of these banks promised to finance projects, but because of energy crisis only 4 banks are left! So, the wind and solar developers have been left starved for capital. Now, they hope that the new president Obama will help to stimulate these markets again. A lot of producers of these “new” energies had to layoff workers. Others have cut back or delayed heir wind farm plans. Also renewable energy sources, like making electricity from wood chips are suffering the financial crisis. The construction of some new projects means that companies needs a lot of money. So, the banks are very important to get some funds. Because of the crisis, banks aren’t likely to give them the funds they need. So companies have to search for other sources for investing capital.
Just as all the companies believe that Obama will create a new wind, I also believe it. I’m sure that the credit crisis will be solved and companies will be able to get money from banks. After every crisis, there is a growing-up which lead to a period of boom. I also believe that the government has to do an extra effort to stimulate the green energy. This in order to create a better climate to live in. What will it be in 2050 when every factory and every household can say that they use energy on an ecologic friendly way? I think it’s a big dream of ecologists, but if everyone does what’s possible, maybe we can all realise their dreams!
Posted by Joachim De Zutter