delayjf
02-17-2011, 12:16 AM
Interesting article about the collapse of the Green energy sector.
After looking at televised images of at what is happening in Egypt last week, the Netherlands, in an abrupt turn around, announced on Feb. 11 that it is reducing its 20 percent target for renewable energy, cutting wind and solar power subsidies, and approving nuclear power plants, which have been banned for the past 40 years.
In the rest of Europe there is panic as the green energy bubble is collapsing due to rising oil prices as a result of Middle East turmoil, as well as the rush to develop cheap shale oil resources using new “fracking” technologies. Investors in green energy are suddenly facing the prospect of bankruptcy as European governments are announcing that they are ending “Feed-In-Tariffs” (subsidies) for green energy projects.
More bad news for CA tax payers as CA Union Pension funds are heavily invested in Green energy.
CalPERS is apparently doing what Orange County did when it went bankrupt in 1994. It is rolling the dice with green energy bubble investments in the hopes of bailing out the huge deficit in the CalPERS pension system. Given the last two years performance, you might say that Tom Steyer and CalPERS are geniuses, and should replace Jerry Brown as governor.
But the problem with “bubble money” is that it is “easy come, easy go.” Like tulip bulb prices, investments in high-risk green power and manipulation of energy markets to reap unjust profits in conventional energy stocks, are prone to sudden collapse. And the market in green power is collapsing worldwide, possibly leaving California as the last holdout.
If green power collapses, California may be facing another energy crisis of how to pay off defunct green power projects in order to clean the air just as it did in 2001. Only in 2001, it was the unpaid bonds on old polluting power plants that had to be mothballed to clean the air that led to the California energy crisis. This time if green power collapses, the high stakes gamble to replenish the CalPERS pension fund may also fail.
http://www.calwatchdog.com/2011/02/15/green-energy-reality-looming-for-ca/
After looking at televised images of at what is happening in Egypt last week, the Netherlands, in an abrupt turn around, announced on Feb. 11 that it is reducing its 20 percent target for renewable energy, cutting wind and solar power subsidies, and approving nuclear power plants, which have been banned for the past 40 years.
In the rest of Europe there is panic as the green energy bubble is collapsing due to rising oil prices as a result of Middle East turmoil, as well as the rush to develop cheap shale oil resources using new “fracking” technologies. Investors in green energy are suddenly facing the prospect of bankruptcy as European governments are announcing that they are ending “Feed-In-Tariffs” (subsidies) for green energy projects.
More bad news for CA tax payers as CA Union Pension funds are heavily invested in Green energy.
CalPERS is apparently doing what Orange County did when it went bankrupt in 1994. It is rolling the dice with green energy bubble investments in the hopes of bailing out the huge deficit in the CalPERS pension system. Given the last two years performance, you might say that Tom Steyer and CalPERS are geniuses, and should replace Jerry Brown as governor.
But the problem with “bubble money” is that it is “easy come, easy go.” Like tulip bulb prices, investments in high-risk green power and manipulation of energy markets to reap unjust profits in conventional energy stocks, are prone to sudden collapse. And the market in green power is collapsing worldwide, possibly leaving California as the last holdout.
If green power collapses, California may be facing another energy crisis of how to pay off defunct green power projects in order to clean the air just as it did in 2001. Only in 2001, it was the unpaid bonds on old polluting power plants that had to be mothballed to clean the air that led to the California energy crisis. This time if green power collapses, the high stakes gamble to replenish the CalPERS pension fund may also fail.
http://www.calwatchdog.com/2011/02/15/green-energy-reality-looming-for-ca/