Headwinds Mount for Green Energy as Costs Rise and Support Wanes
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Falling costs and supportive policies previously boosted green energy investment, but headwinds like supply chain issues and higher interest rates are now increasing costs.
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Wind and solar power costs dropped substantially over the past decade, making them more viable. Low interest rates also encouraged investment.
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However, costs are now rising due to factors like higher steel and battery prices. Rising rates also make financing projects more expensive.
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China's dominance of parts of the supply chain, like solar panels and rare earths, raises concerns about over-reliance.
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Higher green energy costs may dampen public support and lead some politicians to pull back on commitments, as evidenced by the UK's delayed combustion engine phase-out.
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