A(nother) tough week

It's been a tough end to the week for some of the biggest names in European renewables.

Vestas reported today that its first quarter losses widened to 85 million Euros, up from 39 million Euros for the same period last year, amid circumstances the business blamed on a cut in renewable energy subsidies from US and European Governments and a low gas price.

Norwegian solar industry group, REC, attributed falling earnings to the same set of circumstances, highlighting the importance of financial incentives to all renewables, regardless of whether, like solar, in some countries grid parity has been achieved.

Yet in discussing his company's results, Vestas Chief Executive Officer, Ditlev Engel remained positive for the future of wind energy, as fossil fuel prices would continue to see exponenetial rises forcing continued renewable investment.

Engel also suggested that such increases in the price of oil would preclude his Chinese competitors from being able to achieve dominance in the US and European markets, although as the Financial Times has noted, some analysts believe that the Chinese manufacturers will only turn their attention overseas when the Chinese domestic market slows.

Whatever the wider circumstances, be it low gas but high oil prices, currency fluctuations or the myriad of other reasons businesses provide to explain challenging results, one thing is clear: now is not the time for austere Government's to be cutting back on renewable investment. Hitting the big climate targets might be the headline story, but ensuring that domestic European wind energy pioneers aren't undercut by aggressive players from the emerging markets should also be high on the agenda.