23 Dec 2008 05:12:09
UK more attractive for renewable investment
Following recent legislative changes the UK has become a more attractive place for investment in renewable energies, according to Ernst & Young.
One of the top four auditors, Ernst & Young has named the UK as the joint fifth most attractive country to invest in for renewable energy in its renewable energy country attractiveness indices.
It has risen one spot on the list to match Spain, following the ten year extension of the renewables obligation and introduction of the legislative framework for feed-in tariffs in the Energy Bill.
However, balanced against these improvements is the drop in value of sterling.
Head of renewable energy at Ernst & Young, Jonathan Johns, said: "The falling value of the pound is making UK renewable projects increasingly expensive as imported technologies from Europe continue to rise as a result of the exchange rate.
"The declining price of oil is compounding the problem by reducing project revenues as wholesale energy prices fall, resulting in many projects becoming uneconomical. It is unlikely that falling commodity prices such as steel and copper will compensate enough."
The financial downturn also hit the US, which lost its spot atop the list, and was overtaken by Germany.
At recent negotiations of the European Union, the UK retained its obligation to generate 15 per cent of electricity from renewable sources.http://www.ey.com/global/content.nsf/International/Media_...