Onshore wind has a “great future” in the UK despite short-term headwinds caused by changes to government policy, according to RenewableUK.
Speaking at the Renewables Marketplace conference in Liverpool, R-UK chairman Julian Brown said projects with good wind resources would continue to be built in a post-Renewables Obligation (RO) and Contracts for Difference (CfD) environment.
“There’s no need to be fatalistic,” he added. “Wind has a great future, but in the short term there is some ducking and diving to be got through.”
Thrive Renewables chief executive Matthew Clayton said the emergence of power purchase agreements (PPAs) with corporates and industrial end-users would offer new routes to market. Banks would also remain keen on investing in the sector, he added.
“Different components are coming together and it’s helpful to see corporates like Facebook and McDonalds signing PPAs with developers,” he said.
“While banks are conscious of the changed model of not having 20-year fixed revenue, they are keen to get stuck into the brave new world.”
Louise Wilson, founder and director of renewables investor Abundance, noted optimism among the onshore industry that there will be some form of post-RO and CfD support mechanism.
The expectation is encouraging some in onshore wind to start developing new projects, she said.
“The industry is being buffeted, but the policy vacuum will be filled,” she added.
Image: reNEWS
UK onshore eyes ‘great future’
R-UK chair says sector has some 'ducking and diving' to get through
By EBS