Blowing hot and cold

The U.K. renewable energy industry may not reach the government-set target of providing 10% of the country's energy by 2010, according to a report released today by Standard & Poor's Ratings Services. Wind power, which is expected to be the main means of reaching this target, may suffer from under investment. "The Renewables Obligation scheme, introduced in April 2002, may not provide sufficient incentives for investments in renewables," said Standard & Poor's. Infrastructure Finance credit analyst, Jan Willem Plantagie, comments: "The U.K. scheme appears less supportive than in other EU countries. This and other factors mean that the U.K. lags considerably behind countries such as Denmark, Spain, and Germany, despite having a greater abundance of windy weather." The report, entitled "U.K. Blows Hot and Cold Over Wind Power", outlines the challenges faced by the wind power sector in the U.K and examines the current U.K. regulatory framework for wind power projects. It accompanies a more general report, also published today, entitled "Are European Wind Power Projects on their way to Investment Grade?" covering the major credit concerns of wind power projects in Europe. Both reports are available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com