It’s also an interest rate problem. Renewables substitute interest payments for a large up-front capital investment for fuel payments over the useful life of the project. When interest rates rise, it makes renewables less attractive.
EU ETS 1 certificates are at 82€/t right now. The number of certificates is going to be reduced to 45% of 1990s level of the EU27. That should take care of fuel payments.
The issue here is that a lot of EU countries had massive offshore wind auctions. Germany just had a 7GW North Sea auction, a few months ago. This means higher demand for specialized hard to built equipment and specialized workers. This is not stuff you can just built in a week either, but specialized ships and so forth.
Seems likes a typical rapid growth problem. Demand is high and production hasnt caught up yet.
Good news in the long run.
It’s also an interest rate problem. Renewables substitute interest payments for a large up-front capital investment for fuel payments over the useful life of the project. When interest rates rise, it makes renewables less attractive.
EU ETS 1 certificates are at 82€/t right now. The number of certificates is going to be reduced to 45% of 1990s level of the EU27. That should take care of fuel payments.
The issue here is that a lot of EU countries had massive offshore wind auctions. Germany just had a 7GW North Sea auction, a few months ago. This means higher demand for specialized hard to built equipment and specialized workers. This is not stuff you can just built in a week either, but specialized ships and so forth.