Rush to Renewable Energy Generates 'Enormous' Financial Questions in Europe

LONDON -- The spectacular growth in recent years in the number and size of renewable energy sources across the European Union -- particularly wind and solar power -- driven by high subsidies and government rhetoric on climate change has left the national electricity grids scrambling to cope.

"Basically, governments have allowed the buildup of wind without thinking through the grid consequences," Oxford University economist Dieter Helm told ClimateWire. "There are two responses: Stop wasting so much on the rapid development of wind and its questionable economics, or plough on regardless, in which case enormous grid investments are urgently needed."

Estimated costs of strengthening, upgrading and smartening the grids are put at up to €100 billion ($138 billion) over the next decade alone at a time when budgets remain extremely tight and as governments either impose or contemplate cutting their generous subsidy schemes.

As usual, solar and wind are mixed, subsidy regimes and grid issues are conflated, and costs over many years are thrown in without any perspective on what these numbers mean and how they compare to what would be done without renewables. But hey, it's in the NYT, so it must be true.

Wind power