European energy heavyweights call for scaling back of renewables subsidies

Facebook
Twitter
LinkedIn
Reddit
Email

Nine of Europe’s biggest energy companies have called for reforms to Europe’s energy system that would see subsidies for established renewable forms such as solar scaled back.

Presenting proposals to the European Parliament earlier this week, the companies, led by the chief executives of GDF Suez and Italian oil multinational, Eni, said the most mature renewable energy technologies should compete in the regular energy market.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

In a hearing attended by European energy commissioner Günther Oettinger earlier this week, they argued that the lack of “clear” European energy policy was preventing much needed investment in new energy capacity.

This was leading to a situation where energy security was no longer guaranteed and energy bills were rising “sharply”, the group said.

To prevent further bill increases, the group said subsidies for renewables should be “adjusted” to reflect market conditions, though in comments reported by the Financial Times ahead of the hearing, GDF Suez chief executive Gérard Mestrallet put it more bluntly.

“We have to reduce the speed at which Europe is building new wind farms and solar panels. At the moment, it is not sustainable,” Mestrallet was quoted as saying.

The group’s proposals said the more mature renewable energy forms should be integrated into the “regular market process”, where they would compete with longer established forms of energy generation.

The group argued that public support for renewable energy should be limited to the least mature technologies and be restricted to R&D rather than the production of energy, as is the case under current subsidy regimes such as feed-in tariffs.

Mestrallet told the Financial Times that immature renewable energy technologies such as wave and tidal power should be the focus of any continuing public support.

Mestrallet and Eni chief executive Paolo Scaroni presented the proposals on behalf of a coalition of companies that also included Enel, E.On, Gas Natural Fenosa, Gas Terra, Iberdrola, RWE and Vattenfall.

The group also called for the EU to set an “ambitious but realistic” carbon reduction target for 2030 alongside an expanded European emissions trading market.

The squeeze on renewable subsidies demanded by the group is already happening in many parts of Europe, with Spain, the Czech Republic and Romania among countries that have introduced controversial measures to cut support for solar.

Read Next

October 3, 2025
Renewables developer Madison Energy Infrastructure has bought the US distributed generation assets of NextEra Energy Resources.
October 3, 2025
EDF Renewables and Enlight Renewable Energy have advanced solar-plus-storage projects in New Mexico and Arizona.
October 3, 2025
SunStrong Management has raised US$900 million to refinance a 'large portfolio' of residential solar assets developed by SunPower.
October 3, 2025
The US solar manufacturing industry is feeling bullish, despite the policy whiplash inflicted over the summer and the increased pressure on US solar supply chains.
October 3, 2025
Chinese government policies and supply-side production cuts will drive a significant increase in solar and storage component costs.
Premium
October 2, 2025
Australia's solar sector delivered a strong September performance in the National Electricity Market (NEM) as the country entered spring, with combined solar PV generation reaching 3,933GWh - a 17.83% increase from August's 3,338GWh.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA
Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland