Renewable energy is on the ropes. A capital-intensive industry, it has been bruised by the credit crisis. When fuel prices are falling, wind farms and tidal barrages can become unprofitable. Policymakers, however, cannot rely on oil price spikes to turn their energy green. They must act.
A proposed large offshore wind plant in England is now under threat. Eon UK, part of the German energy group, said this week that its London Array project in the Thames estuary was endangered by falling energy prices. Even in a recession, we should not forget renewable energy. Far from it: this is the right time for states to invest in diversifying their energy.
