It would appear that Endurance’s bankruptcy is another cautionary tale for the renewable energy industry and the danger of becoming overly reliant on government subsidies and incentives. — Photo: Endurance Wind Power
Vancouver area company, Endurance Wind Power filed for bankruptcy in early November when the company was placed under the trust of bankruptcy agent Grant Thornton, after its bank, Comerica Bank, called in its loan.
BIV stated, “In 2014, Comerica Bank provided Endurance with a U$10 million revolving credit facility. Court records show Comerica is now suing Endurance for US$6.9 million.”
There are now widespread reports in British newspapers like the Guardian indicating that Endurance’s UK subsidiaries – Endurance Wind Power (UK) Ltd. and Endurance Manufacturing (UK) Ltd. – have also been placed under administration with Grant Thornton’s UK division, putting another 45 jobs in the UK in jeopardy.
It would appear that Endurance’s bankruptcy is another cautionary tale for the renewable energy industry and the danger of becoming overly reliant on government subsidies and incentives, which can be changed or terminated at the will of a changing government or government policy. The UK cut their feed-in tariffs by some 65% and the situation was made worse by a plunging British Pound currency.
“It’s super unfortunate – great little company,” said Jonathan Rhone, chairman of the BC Cleantech CEO Alliance, told BIV. “But it just really underscores the fact that these feed-in tariffs are not designed to be in place forever. They’re designed to initiate a transition with a reduction over time of the tariff to allow these technologies to get into the market, get established and then achieve scale. That is really key for people to realize – that this is not the forever program, these tariffs.”
