Saving Portugal and Spain: My solution

In the previous post in this series I addressed the need for investment in the countries most affected by the current crisis. In this post I will explain what in my opinion would be the best investment in Portugal and Spain.

My proposal would be to invest in green energy production on the Iberian peninsula.
The reason for choosing the green energy sector in general is that this is producing something that Europe desperately needs: reliable unending clean energy (see also an earlier post in this series).

Solar power tower operating near Seville, Spain

The investment should be in the two most promising green energy technologies: wind and sun. I chose wind and sun because water technology is often either already taken or impossible (in the case of hydro dams) or it is in a very early stage (tidal energy), but that may change. I will return later to the biomass option. Wind and sun are two commodities that are very present in the south sides of the Iberian peninsula. They are also being used already. Therefore my proposal would merely expand an existing industry rather than creating an entirely new one.

My proposal would be for the EU/Eurozone to set up a fund that invests in turning relatively dry agricultural grounds into places where solar and wind energy plants can be tested and expanded. The removal of agriculture would probably lead to a drastic reduction in the use of water and therefore would help solve some of the water issues that these countries are facing. Since there are sever issues with water, biomass plants would not be a preferable option.

The installation of high technological equipment would also create a need for well trained engineers. Because it is taking place in the home country of the people who originally left it would be likely that they would return, also bringing the knowledge that they have acquired abroad.  This in turn could help alleviate the effects of the brain drain that is occurring right now.

Finally, putting the newly constructed energy valley in the Iberian peninsula has the advantage that it is in a reliable area. Portugal and Spain are stable democracies as opposed to the countries where the energy valley would be if the European Saharan energy plan would be implemented. 

There is however one maior issue with this investment plan and that concerns the people whose land would need to be taken. A good plan would need to be devised to convince farmers and other citizens to volunteer their land. In practice this means offering a premium on top of the price of the land so that farmers can relocate or find other occupations. This buying up of land would then help slightly with the housing crisis (by injecting money in the real estate sectors) that is now present on the Iberian peninsula.

In this post I have only outlined the what and why of investing in green energy. In the next post in this series I will outline a more detailed plan of the investment. If you agree or disagree with this post please use the comment section below for your arguments :-)