Euro exit by Greece and Spain may not be all bad for renewables

With the Greek political and economic crisis approaching its endgame, and storm clouds darkening over Spain, it is time to ask what the implications could be for renewable energy if both countries left the euro.

Leaving the single currency — and the debt defaults this would involve — would exacerbate the depressed state of both economies in the short term. It would dampen power demand and create more excess capacity.

At the same time, the downturn would put a further squeeze on public finances, leaving little room for increasing or even maintaining existing levels of support for renewables. And that would pile on more misery for wind and solar developers, and their local supply chains.

But leaving the euro may not be a bad thing in the medium…

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