The Challenge of Subsidy-Dependent Energy Models

The Challenge of Subsidy-Dependent Energy Models

In 2012, Globtec Investment committed fully to renewable energy, driven by the promise of a greener future. Over time, we observed that the sector’s growth relied heavily on subsidies and state-backed lobbying rather than market-driven sustainability.

Three years ago, we made the difficult decision to exit the sector entirely—a move that drew criticism at the time. Today, cracks in this model are becoming more visible.

This year, for the first time, a major tender for North Sea wind farms in Germany received no bids, as investors demand guaranteed prices. Without subsidies, large parts of the industry appear unable to operate profitably.

The debate is no longer about whether renewable energy is important—it is. The real question is how to build an energy system that is both environmentally responsible and economically viable without placing undue burdens on consumers.

Picture by Flora Orosz