Financial consultants Ernst & Young have rated the UK as the fifth most popular country to invest in as a result of the Energy Bill which was passed in November according to their Renewable energy country attractiveness indices.
Britain’s rise to joint fifth with Spain has been attributed to recent legislation which specifically sets out provisions for the introduction of Feed-in tariffs by 2010. Feed-in tariffs are fundamental to investors as they guarantee a premium fixed rate for energy fed back into the national grid by small, renewable energy producers.
Also, acting as an important stimulus for investors is the falling value of Pound Sterling which is predicted to reach parity with the Euro in the new year.UK renewable projects increasingly expensive as imported technologies from Europe continue to rise as a result of the exchange rate.
“The falling value of the pound is making
“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” predicts Head of renewable energy at Ernst & Young, Jonathan Johns.
The recent Renewable energy country attractiveness indices saw Germany reach first position as a target for investors and is now seen as the leading light in terms of viable renewable energy innovations.