“The general economic thesis of the renewable energy sector hasn’t changed,” said Karl Miller, chairman of Newco Energy Acquisition Holdings, LLC, which acquires energy-related assets. “It’s still a heavily subsidized industry. It requires a major federal tax credit to make it work.” It still doesn’t appeal as “a capital market investment,” he said.
The usual green assumptions, projections, and policy-errors are on full display here. The companies involved in this program were poorly managed, too reliant on government subsidies, and thrown completely for a loop by the US shale boom and the rise of cheap green technology imports from China.[Green California image courtesy of Shutterstock]