Last month, Bloomberg New Energy Finance, announced that investment in alternative energy in Europe fell 34% in just the first three months of 2011. Why would it fall by a third in so short a time? Because European governments have begun withdrawing the huge subsidies they pay to green-energy companies, and massive tax dollars are about the only thing that make most green-energy projects make economic sense.
Much of the investment in alternative energy is obviously what’s called “subsidy farming,” i.e. planting a little money in a project in the hopes of reaping a harvest of taxpayer-subsidized profits because, if left to market forces, green energy makes little sense.
If you want to know what’s ahead for Ontario taxpayers and electricity consumers, just look at what’s going on in Europe. Thanks to Premier Dalton McGunity’s green-energy dreams, Ontarians, like Europeans, will be paying big bucks for all types of energy — including old, cheap sources such as coal and hydro – and getting little more “clean” energy than now.
Ontario’s green-energy plan, introduced in 2008, was always dependent on the “if you build it, they will come” theory. If only enough tax dollars could be used to subsidize the construction of wind farms and solar panels and algae ponds for biodiesel, eventually there would be enough of these clean sources to make them economically viable competitors to coal and oil.