Split Opinion Regarding UK Offshore Wind Finance Gap

The so-called finance gap could be a drag on UK offshore wind deployment, according to a poll conducted at the RenewableUK Global Offshore Wind 2012 Conference in London.

The survey, which was conducted by global renewable energy consultant GL Garrad Hassan, revealed that 59% of participants thought that it will have a detrimental effect on UK offshore wind deployment, while 41% saying it will not.

The polling result suggests ambivalence within industry on whether the draft Energy Bill will deliver on its promise of attracting investment in low-carbon technologies such as offshore wind. It indicates that although the industry may view the reforms as promising, further detail is needed before it yields firm investor confidence.

The question was asked of delegates within the context of the overriding theme of the conference – cost reduction. The work of the Cost Reduction Task Force, which was presented at the event, recognises the pivotal role that attracting the right kind of finance into the industry will have in reducing the cost of energy delivered by offshore wind. GL Garrad Hassan President, Dr Andrew Garrad contributed to the development of the report as an active member of the specially-selected industry Task Force.

 Joe Phillips, GL Garrad Hassan’s Head of Policy & Strategy, presented clear evidence for ‘finance need not be a significant roadblock to the successful roll-out of the offshore wind industry if the current trends of increased lender appetite, innovative financial structures and diversification of funding-sources are maintained’’.

Citing several recent examples of new equity and non-recourse debt entering the industry, he concluded that ‘whilst there is much more work to be done to unlock new capital, evidence of progress is staring us in the face and naysayers with hidden agendas should be forcefully re-buffed’.

[mappress]

Offshore WIND staff, June 15, 2012; Image: gl