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A substantial difference with accelerated amortisation with windfall gains is that accelerated amortisation does not roll out more wind power capacity, and so does not have the same positive impact on Sweden's net exports.
I think you're tacitly assuming that the "seeded" farms have a lower required rate of return on equity than the "seeding" farms. After all, if the "seeded" farms make sense on a seeding basis with constant cost of equity, then they should also make sense on an accelerated amortisation basis, assuming that you have available, equally priced, equity from other sources. As long as wind is a small(ish) fraction of total real capital investment, the latter does not strike me as an unduly unreasonable assumption.
And since a substantial share of the boom and bust falls to German capital goods industry.
Yes, if you allow a boom-and-bust cycle, you'll keep production in Germany. But if you have stable onshore demand, you'll get onshore industry (the economics of transporting windmills relative to transporting the raw materials say that the manufacturing will relocate to the vicinity of the demand). That's why you want to avoid a boom-and-bust cycle in the first place.
- Jake Friends come and go. Enemies accumulate.
Accelerating amortization of finance capital funded windpower under predatory state market arrangements can reduce exposure to the being bankrupted by a downswing ~ and downswings are to expected, since the ride down from Peak Oil will be a bumpy one ~ but cannot eliminate insolvency risk. By contrast, a pure equity holding with no fixed obligation has no insolvency risk if the operating costs themselves are below the price maker's capital cost. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
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