In a research note on European utilities, Renewable subsidies: a double-edged sword, Credit Suisse argues that renewables are becoming unaffordable.
The cost of subsidies has risen to €32bn ($40.8bn) per year across the five largest EU power markets, and the growing impact on public finances means they “should be considered a problem alongside the eurozone crisis”, it says.
It adds that the buildout of renewables has reduced margins by €4-9 per MWh.
