March 19, 2004—Renewable Energy experts at Ernst & Young believe that the natural wind resources, combined with the Renewable Obligation extension and the recent Round 2 announcement of options on seabed leases have pushed the UK into first place as the most attractive place to produce renewable energy from Offshore windparks.
Speaking at the British Wind Energy Association 2004 offshore conference today, Andrew Perkins will say that this unique condition of circumstances leaves the UK renewable energy market in an extremely healthy position.
Perkins explains, “There are new participants to the UK offshore wind industry who are attracted by size of opportunity and potential financial returns. Ernst & Young estimates that the potential long term price for renewable energy has risen by almost 10 per MWh, to nearly 50 /MWh as a result of these recent announcements.”
However, uncertainties remain. Perkins will conclude, “The extension of the Renewable Obligation supports the project financing of Round 1 projects, but further stimulus for the long term demand of Renewable Energy will be needed to satisfy project sponsors and the wider investment market that the required levels of investment in Round 2 projects will be justified.”
Last month the third Ernst & Young Renewable Energy Country Attractiveness Index revealed that Britain had regained top spot as the most attractive national environment for wind power and second position in terms of overall renewable energy. Despite this there have been recent concerns over the construction of wind farms across the UK and opposition from the MoD. The Government’s target of generating 15% of the UK’s electricity from renewable sources by 2015 remains.
For more information, contact Ernst & Young UK.
