A new report from investment ratings agency Standard and Poor’s says that while the investment prospects for the UK wind power sector are improving, considerable obstacles remain.
Greater certainty for long-term investment has been provided by the extension of the Renewables Obligation, the report says, while capital allowances for grid improvements by regulators Ofgem is also positive.
However, concerns remain that despite the extension of the renewables obligation, reviews and potential policy changes may put investments made on the basis of the scheme at risk. Even so, the risk of a price collapse within the renewables obligation scheme is remote within the next few years, the report adds.