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MAJOR OBSTACLES TO THE DEVELOPMENT OF WIND
1 June 1995
Another newly-released report says capital market structures in the US are a major obstacle to the development of wind and other renewable technologies. The two major obstacles for wind are the higher cost of equity capital and the fact that more of this is needed for wind projects than for other power plants, states the report, by the Department of Energy's Lawrence Berkeley Laboratory near San Francisco. The laboratory prepared the 28 page report under contract with the Energy Information Association. In response, Ed Ing of the American Wind Association agreed that there is a Catch-22 for wind -- for a new technology, capital markets require a higher rate of return and shorter amortisation period, leading to higher capital costs. But capital costs would be lower with a longer amortisation period, he said.
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