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United Kingdom

PREVIOUS NFFO WIND SCHEMES BETTER VALUE

In the light of the low priced contracts recently awarded to projects under the third round of the Non Fossil Fuel Obligation (NFFO-3), existing schemes with earlier NFFO contracts look more interesting to investors by comparison, believes Jonathan Johns of accountants Ernst & Young. "Because previous NFFO wind schemes look better value, the opportunities to refinance NFFO-1 and 2 schemes on a more attractive basis look very good in retrospect," he says. "There is likely to be a demand by people to take equity stakes in those projects or for some refinancing. Moreover, if a NFFO-2 project is not doing so well it may be possible to rescue it." He also points out that the change in interest rates since most existing NFFO-2 schemes were financed also helps make this option more attractive. He adds: "NFFO-2 contracts are becoming a valuable tradeable commodity, which has got to be good for the industry" .

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