First, investors were worried that Germany would not be able to finance the “greening” of its electrical grid, and now there are worries the U.K. is taking on too much debt to finance its own green-energy revolution.
The U.K. Independent reports the government is “facing a multi-billion pound black hole in its budget to pay for new clean energy supplies” that are threatening to raise energy prices and cause instability in the power grid. Sources told the newspaper that “the Department of Energy and Climate Change has already overspent its budget by £1.5bn [about $2.3 billion] to support renewable energy projects over the next five years.”
“Unless more money can be found, key projects such as carbon capture and storage, as well as the future of new offshore wind farms, could be placed in jeopardy,” the Independent reports.
The dire news comes after Prime Minister David Cameron’s Conservative government eliminated subsidies for onshore wind power farms — a move that means virtually no new wind farms will be built, as they relied so much on government support.