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RENEWABLE ENERGY INCENTIVES LOSE GROUND IN EUROPE

12/12/2016

Last week, subsidies for renewable energy lost favor in both the Netherlands and Italy. Despite an announcement two weeks ago by the Dutch government on increasing subsidies for renewable energy projects (including solar, wind, and geothermal), the Ministry of Economic Affairs published an “Energy Agenda” last week saying renewable energy subsidies would be phased out as renewables become more economically competitive. However, the government intends to work with power companies to make it easier for individuals to invest in renewables. In Italy, the Constitutional Court rejected an appeal by four solar energy companies that asserted that a law passed in 2014, which retroactively affected incentives for solar power plants, was both unconstitutional and undermined the country’s ability to attract solar power investments. An association of renewable energy companies has filed a separate appeal, on which the court has yet to come to a decision. For the full story on the Netherland’s approach, see http://uk.reuters.com/article/us-netherlands-energy-idUKKBN13W1KY. For the full story on Italy’s court ruling, see http://uk.reuters.com/article/us-italy-renewables-court-idUKKBN13W1T3.