New research has shown for the first time that recent announcements from Whitehall are having a significant impact on investor confidence and their ability to lend to onshore wind farm developers.
Green-energy body Scottish Renewables (SR) is today publishing survey findings it says shows for the first time how UK Government policy is scaring off potential windfarm investors.
The research was carried out by professional services firm EY, which found lenders were reluctant to back projects after Whitehall’s recent decision to end Renewables Obligation (RO) support in 2016, a year earlier than was planned.
SR sebior policy manager Michael Rieley said: “Our members have already expressed concern that they were entering an investment hiatus and this survey of lenders would indicate their suspicions are well founded.
“Around two gigawatts of onshore wind projects in Scotland have been put at risk. These are projects that could bring around £3billion of investment and provide enough generation to meet the equivalent electricity demand of 1.2million Scottish homes.”
EY assistant director Matthew Yard said: “The results of the survey indicate that raising project finance for UK onshore wind RO projects has become more complex, more expensive and increasingly difficult since the announcement of the early closure of the RO.
“The ongoing uncertainty makes it harder for projects and sponsors to raise senior finance”.
Conservation group WWF Scotland said: “This survey provides further evidence that the UK Government’s energy plans are damaging investor confidence in the cheapest form of renewable technology.”
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