Renewable Energy Corporation (OSE: REC) retreated along with the rest of the industry as prospects in the world’s biggest solar market just got a lot dimmer as German authorities are removing up to 30 percent of the subsidies in two phases. The first and larger cut should come on March 9th as photovoltaic incentives are lowered.
Yearly installations have skyrocketed as Germany is doing away with nuclear power. The government’s aim is to reach 66 GW by 2030 with annual instalments between 2.5 and 3.5 GW. At 2011 record pace of 7.5 gigawatts, it would not take long to get there from the current 25 GW level.
The news was already pretty much common knowledge but it was expected to happen a little bit later. This means that 2012 revenue and earnings estimates are now revised lower. REC closed the day down by almost 9% at 4.36 NOK.
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