Wind, Solar Are Uneconomic, Says Exxon

Exxon estimates solar and wind energy demand will grow at a 10 percent rate annually over the next 25 years, but only on the back of government subsidies and tax breaks.

Published: 31-May-2005

IRVING, Texas (Reuters) - It's the economics, stupid. Or so says Exxon.

The economics of solar and wind energy is why the world's largest publicly traded energy company is not making any bets on the environmentally friendly power sources now, and does not plan to any time soon.

Despite the growing popularity of renewable energy sources — top competitors like BP <BP.L> and Chevron Corp. <CVX.N> dabble in it — Exxon Mobil Corp. <XOM.N> has shied away from investing in solar and wind energy, arguing that the business is viable only with Uncle Sam's help.

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