Green energy a poor investment for German company

IBD:
The CEO of Siemens AG, the German manufacturing giant, has been sent packing. Seems the board had it with his stewardship. Instead of making solid gains, he took the company down a green energy hole.

Peter Loescher was picked from Merck & Co. in May 2007 to lead Siemens out of a troubling time. What they got was an executive who made a bet on a trendy interest and didn't get the results that were expected of him.

"This weekend," Bloomberg News reported Monday, the company "lost patience after Loescher's expansion into green energy and expensive acquisitions led to a fifth profit-forecast cut."

Loescher was then dismissed on Wednesday.

He can't say he wasn't warned. He needed only to look at Spain, where attempts to create a green economy failed miserably.

Researcher Gabriel Calzada Alvarez at the Universidad Rey Juan Carlos looked at the Spanish effort and found that for every green job that was created, 2.2 jobs were destroyed. Alvarez also discovered that for each green megawatt of energy brought on line, 5.28 jobs were lost elsewhere in the economy.

Italy, Denmark and other European nations have also had bitter experiences with green initiatives. So has Germany, which set out to produce 80% of its energy from green sources by 2050.
...
Current green energy solutions are too inefficient to be profitable or competitive with other energy sources.   While it make sense to do research looking for a viable alternative source of energy, it does not make sense to invest in current solar or wind technology.  They may work in special situations, but they are a loser when having to compete with traditional energy.

Comments

Post a Comment

Popular posts from this blog

Should Republicans go ahead and add Supreme Court Justices to head off Democrats

Washington Post: Some Democrats eye adding more justices to the Supreme Court to change its ideological bent The once-remote idea has gained the attention of liberals angered by the GOP push to remake the federal courts. Probably the easy way to defeat this court-packing scheme is for Trump to propose doing the same thing now.  It would lead to Democrat denunciations and claims that it would be wrong, thereby blowing up any attempt by them in the unfortunate event of Democrats winning a presidential election.
Read more

29 % of companies say they are unlikely to keep insurance after Obamacare

Conn Carroll: A new survey of 368 midsize to large companies found that 29% of them are considering terminating their active employee health care plans when Obamacare is full implemented in 2014. Only 71% of employers surveyed said they did not expect to drop their health coverage, while 20% said they did not know and 9% said they were planning to exit. The latest survey, conducted by Towers Watson, echoes an ealier survey by McKinsey & Co. finding that 30% of private-sector employers were planning to drop their employee health insurance coverage by 2014. When the Congressional Budget Office crunched Obamacare's spending numbers, they estimated that only 7% of employees currently covered by employer-sponsored plans would lose their plans. ... This means the cost of the health care fiasco will be hundreds of billions more than estimated by the CBO and Congressional Democrat. It is also clear that Obama's pledge that you could keep your health care plan if you wanted t...
Read more

Is the F-35 obsolete?

Headline USA: Pentagon Fires Back after Musk Calls Its Most Expensive Project ‘Obsolete’ 'Yeah, as I'm sure you can appreciate, Mr. Musk is, currently, a private citizen, I'm not going to make any comments about what a private citizen may have to say about the F-35....'   ... ... Drones appear to be replacing jets for many operations.  The Russia-Ukraine war is an example of that.  Drones are often hard to detect and can be used for intelligence operations as well as for attacking enemy targets.  It would not surprise me to see drones engaging other drones in combat.  They also cost much less than manned fighters.  
Read more