RENEWABLES
Stephen Byers, the UK’s trade and industry secretary has announced preliminary consultations on an obligation to ensure that 10 per cent of the UK’s electricity supply comes from renewables by 2010. Almost half of the anticipated target is expected to be met by wind energy.
Under the terms of the new policy, the indicated buy-out price for renewable energy is likely to see satisfactory levels of onshore wind being developed if the proposed regional planning targets are successfully implemented. There is also a priority to develop offshore wind capacity, backed by capital grant support. However, concern remains about the damaging impact of NETA on contract prices as it appears increasingly likely that falling prices and the climate change levy may be fatal for smaller schemes in the UK.
In the wider scheme of things though, shares in the leading developers of windturbines have been soaring to reflect the global market growth estimated at 18 – 30 per cent annually. Two of the leading manufacturers, Vestas and NEG Micon, both of Denmark, have seen share prices triple over the last year as governments continue to make committments to renewable energies.