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The problems seems to be
1) Short term vs. long term - consumers are worried about their electricity bill this year, entrepreneurs/investors/bankers have to SHOW a profit this year, and a politician's max immediate life span is five years (with an attention span of 5 minutes).
ii) the unquantifiable nature of the risk - Oil prices HAVE gone down dramatically for long periods between spikes in the past
iii) All the investment has to be very upfront - major cash flow issues for anyone who doesn't have deep pockets, or huge credit facilities - you are not talking about humanitarians or visionaries here
iv) The market makers in the "redeemable units" will cream off huge service fees which will make the whole thing unattractive for a small investor
The longer term nature of the business may make it attractive for pension funds who have huge assets and very long term liabilities but who will see wind energy as just one other class of asset in their portfolio and one they can usefully use as a hedge against oil price sensitive stocks (e.g. Airlines.
But is this not good ol capitalism as we know it?
Index of Frank's Diaries
by Frank Schnittger - Sep 18 39 comments
by Luis de Sousa - Sep 13 30 comments
by ARGeezer - Sep 7 45 comments
by Frank Schnittger - Sep 8 70 comments
by Frank Schnittger - Sep 4 18 comments
by Bernard - Aug 27 5 comments
by Frank Schnittger - Aug 30 14 comments
by Frank Schnittger - Sep 1839 comments
by Luis de Sousa - Sep 1330 comments
by Frank Schnittger - Sep 870 comments
by ARGeezer - Sep 745 comments
by Frank Schnittger - Sep 418 comments
by Frank Schnittger - Aug 3014 comments
by Bernard - Aug 275 comments
by gmoke - Aug 27