Renewable energy sector runs the risk of overpowering market

Another day, another billion-dollar renewable energy deal. That has been the story of the past few weeks as a raft of companies have made eye-catching solar and wind-power investments. US private equity group, KKR, swooped on Spanish solar developer Gestamp. Germany’s Siemens won a huge wind-turbine order from Denmark’s Dong utility. SunEdison, the US renewables juggernaut, agreed to buy the Vivint solar-installation group. A lot more transactions of this nature can be expected as what was once called “alternative energy” keeps growing.

But what if the extra-clean electricity eventually generated is doomed to make no money? Or to be more precise, not enough money to keep the companies producing it profitable without a lot more renewable subsidies?

Read more on Financial Times