Concerns emerged this week over the effectiveness of carbon trading in encouraging alternative energy development after a tumbling carbon price made investment in projects more expensive. The price of carbon has fallen by nearly 70 per cent since reaching a high of €32.90 in April 2006 to a new low of €10.81 last week, although it recovered this week to just under €12.

The German government and energy companies have made a big fanfare about their plans to build offshore wind parks in the North Sea. However the financial crisis is forcing several projects to be put on hold, with smaller companies in particular feeling the pinch. ...While the big energy firms have deep pockets for the development of renewal energy, the smaller companies are feeling the pinch.

Current and former executives at the wind turbine producer's Spanish subsidiary are accused of fraud Wind turbine maker Vestas has been defrauded for around 90 million kroner by employees of its Spanish subsidiary Vestas Eólica, according to a company press release.

Wind turbine blade maker LM Glasfiber Group has announced that it will lay off up to 600 workers at plants in Europe and the United States. The Danish company plans to cut a fifth of its domestic workforce - 450 employees - and to close one of its two blade plants in Little Rock, Arkansas, with the loss of 150 jobs. ...Despite this, the company stressed it is confident in the long-term outlook for the wind turbine business.

Vestas Wind Systems A/S, the world's biggest wind-turbine maker, said it uncovered a 90 million kroner ($16 million) fraud at its Spanish unit. Vestas has notified the authorities in Barcelona of the case, which involves current and former employees who made false invoices for nonexistent services, the Randers, Denmark-based company said today in a stock-exchange statement.

The green energy sector has a lot riding on 2009. Policymakers from Washington to Beijing have pledged billions of dollars in "cleantech" investment to jump-start the depressed global economy and create millions of new low-carbon jobs. ...As with the solar industry, wind power has been hit by a sudden slowdown in private sector investment as credit has dried up and the price of oil has fallen from its mid-2008 high. The industry hopes public spending will help fill the gap until the global economy gets back on its feet.

LM Glasfiber announces mass lay-offs in Denmark as a result of the on-going financial crisis. Wind turbine blade producer LM Glasfiber has announced that it is to fire one fifth of its Danish workforce in what is being called the biggest domestic firing-round of recent times. ...‘We believe 2009 will be a year with stagnant growth in the windmill market and LM Glasfiber has a clear case of over capacity,' said Rothausen.

A proposed billion-dollar wind farm has been earmarked for 52km of the Woakwine Range. The proposal, triple the size of the Lake Bonney Windfarm, involves up to 300 turbines producing 600 megawatts of energy.

The big challenge, wind developers acknowledge, is modifying site permits that restrict the spacing and height of turbines. Neighbors are often put off by the visual impact of the turbines themselves ...Wind developers face an additional hurdle to repower in Denmark, where legislation going into effect next year will require wind-park operators to compensate residents if wind turbines reduce their property values.

The regional authorities have been opposing the plan to build two more wind-farms in Vysočina region. They fear that the facilities would harm the landscape and make the region less attractive for tourists. ...the study about the effect on the environment has showed that the wind-farms would significantly affect the landscape and may possibly decrease the numbers of tourists that are attracted to the region by its rural scenery.

While Greek authorities are taking steps to harness the country's untapped potential in wind and solar energy, and to meet European Union targets on curbing the use of polluting fossil fuels, the residents of Aegean islands are opposing the drive, afraid that towering wind turbines will mar the natural beauty of their communities and offend the tourists on whom they rely.

Falling prices for European carbon emissions permits could stunt investment in the renewable energy sector both within and outside Europe, but the credit crunch continues to have a greater impact. ...A falling carbon price could worsen the economics of renewable energy further, as falling demand for carbon emissions permits in a deepening recession pulls down carbon prices, benefiting fossil fuels.

Theolia SA, the French wind-power company part-owned by General Electric Co., dropped the most in more than five years in Paris trading after abandoning financial and operational targets. ..."Theolia is getting short of cash,'' Exane BNP Paribas analyst Yohann Terry, who has an "underperform'' rating on the shares, said today in a report. "We believe it will be difficult for the company to create significant value'' from its pipeline of wind-power projects.

Babcock & Brown Ltd (B&B)has sold wind farm assets held by B&B Wind Partners in Portugal for $2.23 billion. The assets were sold to a consortium of investors led by Magnum Capital. B&B said it would earn $285.82 million in net proceeds from the sale of its 50% share of the portfolio. This represents a price above book value and will be used to pay down project debt secured against European wind assets, it added.

Wind farms could be having a radical impact on North Sea wildlife, a new study warns. ...In a paper published this month in the Journal of Marine Systems, Goran Brostrom, of the Norwegian Meteorological Institute, warns that generating power at sea threatens marine life.

Extracting energy from wind changes regional air currents, which can in turn affect how the nearby ocean circulates, according to Goran Brostrom of the Norwegian Meteorological Institute in Oslo. In a paper published this month in Journal of Marine Systems, Brostrom shows in a model that winds swirling at 11 to 22 miles per hour downwind of large farms are uneven. As they blow over the ocean they can roil the waters, causing upwelling. ...the effect is enough to bring nutrient-rich waters up from the depths, which marine life can thrive on.

Big American utilities are slashing their investments in alternative energy. Florida Power & Light has cut its planned investment in wind power next year by 400 megawatts. Duke Energy of North Carolina has lopped $50m off its budget for solar power. And on October 31st VeraSun Energy, one of America's biggest ethanol producers, caught out by gyrations in the prices of corn and petrol (gasoline), filed for Chapter 11 bankruptcy protection. In the European Union the price of carbon permits has fallen from a high of almost €30 in July to around €20, making clean-tech investments less attractive.

William Kovacs, at U.S. Chamber of Commerce, warns: "Anyone who thinks you can have a cap-and-trade system in which trillions of dollars of new securities will be traded is just not paying attention to what's happening on Wall Street." Meanwhile, prices in emerging carbon markets (Carbon Finance) globally have held up better than in other commodities markets, but financial analysts caution that these markets are too immature to provide a safe haven for investors (Reuters). Though sales of carbon emission offset credits--investment in green projects in lieu of direct emissions reductions--have been strong, some experts still express concern over the quality of oversight (WSJ) these projects receive.

An Industry Ministry official said the energy watchdog would check how many wind and solar power plants were installed in time to receive full subsidies before official aid was cut. "There are some signs that there may be fraud in the installation and functioning of wind and solar parks," the official, who asked not to be named, told Reuters.

Spain is inspecting renewable-energy installations suspected of claiming they started producing electricity before they actually entered service. ...Wind generators, which supply about 11 percent of Spain's power, and solar stations earn premium rates that are being scaled back. The generators have an incentive to get their stations operating as soon as possible to get the better price.