According to a recent report, the tide has turned against renewable energy projects. There are several reasons behind this shift which are interlinked, including the state of the global economy, government finances, difficulties in funding, and regulatory uncertainty. Prior to the financial crisis in 2008, renewable energy projects were being avidly pursued by governments across Europe, the US and China.
Wind farms and solar power grids, for example, were seen as 'green gold', especially in the face of the record high oil prices the world faced pre-crisis. But things changed very quickly as credit lines tightened and have remained that way for three years. There has been ongoing consolidation in the sector during this time through increased M&A. The crisis left many government balance sheets in bad shape, and this has led to reduced tax and regulatory incentives for the development of renewable energy projects.
