The governments recent uncertainty over the renewable industry has looked to force the hand of one of the largest renewable investors within the UK to begins plans to massively scale back it’s investment. Although not the primary reason for this proclamation it is the result of being able to compete for future energy projects and subsidies that has been one of number of deciding factors.
The companies is likewise considering whether to pull out of projects they are already heavily involved in as they deem the governments uncertainty going forward in the coming years to much of a risk to future investment. The renewable company RWE which is can take credit for many wind generation farms throughout the UK says it will in the coming years be focusing on quality not quantity when they choose their projects.
With one of their parent companies part of the big six (Npower) they now say they are looking to scale back their investment in overall green technology in the UK and abroad by up to 50% with Britain likely to see some of the majority of their cuts due to uncertainty. News of this nature will come as a blow to the UK government as with loss in investment comes loss of jobs but it is hoped with plans of future competition being increased that the shortfall will be easily filled with other suppliers. Although such new proposals weren’t directed to offshore wind but more to inland solar panels, biomass, wind generation projects it is hoped that any potential void could lead to growth from other companies within the industry.
While news of potential investment withdrawals have been not completely unexpected as others within the big six could follow suit dependent on what government future direction is, what is more unexpected is the company considering to sell off a number of it’s plants. With again uncertainty being a driving factor stakeholders within RWE also stated the UK government continued hold up in energy market reforms would also be a deciding factor. Including lack of government support for facilities that they have previously built within the UK. They are also looking into the option of selling shares in the company projects to their own employees as a result of positive similar options given in a number of their European facilities.
The companies is now looking forward and towards future investment possibilities within it’s various wind, solar power and biomass projects. Whether this is from companies, communities, employees and governments they will certainly explore all avenues as opposed to relying so heavily on government subsidies.
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