31 Dec '11, 9am

Renewable energy still not cost effective | Peak Oil News and

Renewable energy still not cost effective Sooner or later, the laws of economics prevail, even in heavily subsidized industries such as solar power. The latest evidence that government manipulation cannot overcome economic reality is the decision by BP PLC, the giant British energy company, to leave the solar power business. BP has developed solar energy for 40 years and for more than a decade touted its “Beyond Petroleum” campaign. The Wall Street Journal suggested, however, that BP’s solar experiment was more gimmick than serious investment. BP spent millions trying to go green, but simultaneously spent billions on its traditional gas and oil business. International competitors, particularly China, turn out solar panels more cheaply, even as global demand has slowed. When supply outstrips demand, higher-cost providers suffer, as BP learned. Even government subsidies, wit...

Full article: http://peakoil.com/alternative-energy/renewable-energy-st...

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