Saturday, January 07, 2012

Wasted investments in 'Green' energy drive Portuguese to the Chinese!

There is a fascinating report, linked here, from Deutsche Welle, titled "Chinese investment in Portuguese power grid raises eyebrows," explaining how wasted investments in green energy and poltical mishandling in Germany, seem to have driven the main Portuguese electricity supplier into selling a large stake in their company to the Chinese. Some quotes:

What tipped the scales for Three Gorges was that on top of 2.7 billion euros ($3.4 billion) they offered for the EDP shares, the Chinese giant pledged 2 billion euros in follow-on investment, and up to 2 billion euros more in financing for the deeply indebted Portuguese concern.

At a recent signing ceremony at the Portuguese Ministry of Finance, Three Gorges Chairman Cao Guanjing said it was just the start of a larger Sino-Portuguese partnership......

Under the leadership of Chairman Antonio Mexia, who has been in charge since 2005, the company has pursued a green, forward-looking strategy, investing in hydroelectric dams and windfarms in Portugal and other countries. EDP is now the world's number three wind power company.

But while all that investment has been a promising long-term strategy, it has helped put the company into debt in the short term. Some analysts said the government was almost bound to go with a suitor who could help EDP pay down its debts now.....

Until two weeks ago, Germany's E.ON was seen as the front-runner in - not least after company chairman Mexia visited E.ON headquarters in Düsseldorf just days before the Portuguese government announced its decision.

But that visit, along with reports that German Chancellor Angela Merkel was pressuring her Portuguese counterpart to choose E.ON, prompted widespread criticism in the Portuguese press, which have been critical of Berlin's high-handedness in demanding that Portugal undergo structural economic reforms.

Such is what the EU has achieved by its deliberate smashing of the democracies 27 national parliaments all across the Continent of Europe. Resulting, inter alia, in the handing of the utilities of entire  nations to totalitarian foreigners from across the other side of the globe.

In Britain's case perhaps we were comparatively fortunate that our energy supply industries were snapped up earliest by our near neighbours, whom we might eventually coerce to relinquish them!

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