Higher prices for long term power purchase agreements (PPAs) have pushed the UK into pole position as the most attractive country for renewable energy investments, according to Ernst & Young. Over the past six months, electricity retailers have been offering improved terms for PPAs of ten to 15 years duration, explains Ernst & Young's Jonathan Johns. This is due to increased competition among retailers to secure renewables obligation certificates (ROCs) after the renewables obligation (RO) was ratcheted up from ten per cent by 2010 to 15% by 2015. The improved floor price of contracts provides banks with the revenue security against which they can lend, and has led to higher levels of debt in recent renewable project financings, says Johns. This should increase the number of projects reaching construction, he adds. The UK moves up from second place to be joint leader with Spain in Ernst & Young's Country Attractiveness Index for all renewables and occupies first place in the wind index.
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