Released March 25, 2010 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The United Kingdom plans to kick-start investment in renewable energy projects, particularly offshore windfarms, by revealing plans to create a £2 billion ($3 billion) Green Investment Bank to entice private investors.
The new institution was unveiled as part of the U.K.'s budget announcement yesterday by Chancellor of the Exchequer Alistair Darling. Half of the money will come from the government through the sale of a variety of national assets, and private investors will provide the rest. In addition to the Green Investment Bank, the government has opened up a competition worth £60 million ($89.5 million) to modernise the country's ports to attract companies involved in building offshore windfarms. In January, the government announced the winners of its Round 3 competition for planned offshore windfarms, which will eventually generate 25 gigawatts of electricity and cost more than £100 billion ($149 million) to construct. For related news, see January 11, 2010, article - Winners of U.K. Offshore Wind Jackpot Revealed.
"Improving our infrastructure also requires us to renew and modernise our energy supplies," Darling said. "Again our competitors are not standing still. China is building a new power station every week to meet its growing energy needs. We need to take long-term decisions to secure our supplies while moving to a low-carbon economy. This means replacing our ageing nuclear power stations. It also means investing in renewable energy along with sustainable transport. To deliver this ambition--vital for future jobs and the health of our planet--I am setting up a new Green Investment Bank. It will control £2 billion worth of equity. Half will come from the asset sales, including the Channel Tunnel rail link, with the rest matched by private investment. This equity will unlock billions more of finance from the private sector."
The move has been welcomed by the renewable energy sector, although there was some criticism that the government didn't announce its plans for more financial support for biomass projects.
Gaynor Hartnell, CEO of the Renewable Energy Association (London), said: "It's important the Green Bank is sufficiently capitalised and supports renewable energy in all forms and at all scales. The bank could help to optimise manufacturing and job-creation opportunities across the full range of renewable technologies."
The government was expected to announce the "grandfathering" of biomass projects under the Renewables Obligation scheme, but this has been postponed.
"This is an absolutely vital issue for the industry," Hartnell said. "Government has today given some indication of its proposed solution, and we will be scrutinising these in detail. The crucial test will be whether the statement due on Tuesday does enough to unlock the billions of pounds of planned investments that have been stalled since before Christmas."
Andy Atkins, executive director of Friends of the Earth, said: "The Government's announcement to set up a Green Investment Bank is fantastic news. It should be a crucial building block in the creation of a safe, clean and prosperous future. This bank will provide crucial funds for major green developments, such as offshore wind projects, which will slash emissions, increase our energy security and create thousands of new jobs. We must do much more to build a low-carbon economy, but today's announcement is a massive stride in the right direction."
IIR's Renewable Energy Database provides extensive coverage on the Wind Energy, Geothermal, Hydroelectric, Landfill Gas-to-Energy and Utility-Scale Solar power plants throughout North America, and is now expanding coverage across the world.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. For more information send inquiries to europe@industrialinfo.eu or visit us online at Industrial Info Europe (http://www.industrialinfo.eu).
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The new institution was unveiled as part of the U.K.'s budget announcement yesterday by Chancellor of the Exchequer Alistair Darling. Half of the money will come from the government through the sale of a variety of national assets, and private investors will provide the rest. In addition to the Green Investment Bank, the government has opened up a competition worth £60 million ($89.5 million) to modernise the country's ports to attract companies involved in building offshore windfarms. In January, the government announced the winners of its Round 3 competition for planned offshore windfarms, which will eventually generate 25 gigawatts of electricity and cost more than £100 billion ($149 million) to construct. For related news, see January 11, 2010, article - Winners of U.K. Offshore Wind Jackpot Revealed.
"Improving our infrastructure also requires us to renew and modernise our energy supplies," Darling said. "Again our competitors are not standing still. China is building a new power station every week to meet its growing energy needs. We need to take long-term decisions to secure our supplies while moving to a low-carbon economy. This means replacing our ageing nuclear power stations. It also means investing in renewable energy along with sustainable transport. To deliver this ambition--vital for future jobs and the health of our planet--I am setting up a new Green Investment Bank. It will control £2 billion worth of equity. Half will come from the asset sales, including the Channel Tunnel rail link, with the rest matched by private investment. This equity will unlock billions more of finance from the private sector."
The move has been welcomed by the renewable energy sector, although there was some criticism that the government didn't announce its plans for more financial support for biomass projects.
Gaynor Hartnell, CEO of the Renewable Energy Association (London), said: "It's important the Green Bank is sufficiently capitalised and supports renewable energy in all forms and at all scales. The bank could help to optimise manufacturing and job-creation opportunities across the full range of renewable technologies."
The government was expected to announce the "grandfathering" of biomass projects under the Renewables Obligation scheme, but this has been postponed.
"This is an absolutely vital issue for the industry," Hartnell said. "Government has today given some indication of its proposed solution, and we will be scrutinising these in detail. The crucial test will be whether the statement due on Tuesday does enough to unlock the billions of pounds of planned investments that have been stalled since before Christmas."
Andy Atkins, executive director of Friends of the Earth, said: "The Government's announcement to set up a Green Investment Bank is fantastic news. It should be a crucial building block in the creation of a safe, clean and prosperous future. This bank will provide crucial funds for major green developments, such as offshore wind projects, which will slash emissions, increase our energy security and create thousands of new jobs. We must do much more to build a low-carbon economy, but today's announcement is a massive stride in the right direction."
IIR's Renewable Energy Database provides extensive coverage on the Wind Energy, Geothermal, Hydroelectric, Landfill Gas-to-Energy and Utility-Scale Solar power plants throughout North America, and is now expanding coverage across the world.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. For more information send inquiries to europe@industrialinfo.eu or visit us online at Industrial Info Europe (http://www.industrialinfo.eu).
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
