Investor nerves rise in EU over threats to support for renewables.

FT:  “As the third anniversary of the Greek bailout nears, a shift is afoot on the continent that gave the world its biggest carbon market, its most effective green electricity subsidies, and its first offshore wind farms. It is too early to call it a U-turn, let alone a permanent reversal. But jitters are clearly growing about the cost of tackling climate change and building a green electricity infrastructure in the world’s oldest industrial powers.” “….Germany now accounts for nearly half of Europe’s solar power capacity and 30 per cent of its wind power. Renewable power – mostly wind, solar and biomass – made up a formidable 22 per cent of Germany’s electricity generation last year. But, with the levy added to German power bills to help pay for this growth nearly doubling to €0.053 per kWh – and an election looming in September – environment minister Peter Altmaier has unveiled plans to freeze renewable subsidies for two years. He has also said future rises would be limited to 2.5 per cent a year after that. …“Investors are scared,” Reed Smith’s Stefan Schmitz told a recent Mergermarket conference of renewable energy financiers in London. “A number of very big investors have already decided to pull out of the German market because of the uncertainty.” This is not the first sign of a retreat on green subsidies in the EU. Cash-strapped countries such as Spain, Italy and Portugal have already wound back their incentives.”