Published on : Nov 29, 2013
At a time when no country can afford to ignore green and alternative energy solutions, the U.K. is on the threshold of making major investments in this sector by way of offshore wind projects. This announcement was recently made by Ed Davey, Energy and Climate Change Secretary. This announcement is an indication that the U.K. continues to push for the expansion of low-carbon power sources.
According to a statement made by Davey in parliament, the number of developers interested in signing these contracts has exceeded their expectation. He added that the country can expect “good news” pertaining to huge investments in offshore wind projects shortly.
With no major project being signed in the recent past, RWE AG having scrapped its $7.4 billion project and Centrica Plc playing wait-and-watch with another project, there were fears that developers of renewable power projects were losing interest in the U.K. However, this announcement is expected to revive confidence in the green energy sector, especially since Prime Minister David Cameron said that he wants to take measures to subsidize green energy. In a bid to promote more investments in this sector, developers have been offered contracts on an interim basis even as the government adds the final touches to its energy legislation expected to be passed by the end of 2013. Among other things, as the new law comes into force, it is expected to have features such as a 15-year price guarantee for wind power producers.
In the past, RWEs renewable energy business unit had scrapped a wind farming plan-that was to be installed in the ocean off Southwest England-citing high costs resulting from engineering hurdles.