The renewables industry is facing significant headwinds in the fallout from Russia’s full-scale invasion of Ukraine in early 2022. Moscow’s reduction in gas supplies into continental Europe left governments scrambling to beef up domestic power generation, accelerating a shift towards renewables.
However, the resulting higher energy bills pushed up inflation rates, adding costs to renewables supply chains already under pressure from the surge in demand. Meanwhile, oil and gas companies have retrenched from green projects in favour of traditional high-margin fossil fuel projects.
As a result, renewables companies have been pausing projects and cutting jobs in an attempt to rebalance their portfolios. The solar industry has a history of boom-and-bust cycles, dictated typically by government policies.
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State-directed economic actor slow to react, gets caught out. News at 11.
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The renewables industry is facing significant headwinds in the fallout from Russia’s full-scale invasion of Ukraine in early 2022. Moscow’s reduction in gas supplies into continental Europe left governments scrambling to beef up domestic power generation, accelerating a shift towards renewables.
However, the resulting higher energy bills pushed up inflation rates, adding costs to renewables supply chains already under pressure from the surge in demand. Meanwhile, oil and gas companies have retrenched from green projects in favour of traditional high-margin fossil fuel projects.
As a result, renewables companies have been pausing projects and cutting jobs in an attempt to rebalance their portfolios. The solar industry has a history of boom-and-bust cycles, dictated typically by government policies.
State-directed economic actor slow to react, gets caught out. News at 11.