Published Date : Oct 21, 2015
Fifteen policy changes have been deemed as irrational by major energy companies in the U.K. The policies were introduced by the Conservative government in May 2015 and have been largely considered to have created non-investable areas in the U.K. renewable energy sector. Energy companies claim that the policies have lost them billions of pounds worth of investments.
The U.K. renewable energy unit from the German RWE Group, known as RWE Innology, has axed nine wind projects, all onshore, inside of England in the past few months. This has frozen investments of about £250 mn.
Onshore wind is considered to be a core growth segment for renewable energy businesses. Instead of creating new avenues of investments, it has transferred the money marked for U.K. wind projects to similar projects in Germany and the Netherlands.
RWE Innology’s onshore wind lead Mike Parker said that the investors are now concerned over whether the whole of the U.K. energy market is now worth investing. The concerns have spread outside of renewables and into the entire energy sector of the region.
He added that the people will only invest money where there is stability, and cited the nine cancelled projects. In addition to the cancelled projects, RWE Innology has also paused other projects indefinitely. Parker said that Britain is no longer seen as a feasible investment region for energy.
The concerns raised by Parker are echoed by multiple large energy companies and groups. The list includes Vattenfall and EDF, both of whom have announced project cancellations similar to RWE Innology.
RenewableUK has estimated that over a gigawatt of energy generation capacity may be lost due to lack of investments in the onshore wind sector