The Downturn Hits Green Energy

Cheaper oil is diluting demand for energy efficiency in Europe, and tighter financing is making expansion, or even survival, more difficult

It was only a matter of time. As the impact of the global financial crisis spreads into all corners of the economy, Europe's world-beating green energy sector is starting to feel the pinch. Plunging oil prices have made renewable energy sources relatively less cost-effective, while thinner profit margins have prompted big industrial users of power to tighten their budgets for sustainable energy programs—cutting into sales by green energy suppliers.

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