Europe warned on wind sector uncertainty

The European Wind Energy Association (EWEA) says government policies across the region are having an increasingly negative impact on the wind sector.

The association said in a statement that there was an ongoing “uncertainty crisis” which is affecting investment in a significant way.

According to the EWEA, investing in wind energy makes “absolute” economic sense for the European Union as it significantly helps in achieving the 20 per cent renewable energy target of the region by 2020.

They contend that government impact is being affected by “political campaign rhetoric” that strains investors into raising the cost of capital, and by creating retroactive changes to wind energy policies for those that have invested based on the regulations in place when the investments were made.
Andrew Garrad
“This political uncertainty is deterring financiers and investors and has already caused job losses and negative financial result announcements.”

The EWEA go on to point out the employment created by the sector along with reducing the cost associated with importing fossil fuels, with $7.44 bn of fuel costs avoided in 2010.

The statement added that as wind energy gets increasingly commercialised, it will become more cost competitive as production costs decrease.

“By deterring wind energy investment, governments are throwing away opportunities to create jobs and growth in Europe, improve security of energy supply, cut the cost of fossil fuel imports, reduce pollution and tackle climate change,” concluded EWEA.

Meanwhile Andrew Garrad (pictured) of the United Kingdom took over the presidency of the European Wind Energy Association (EWEA) on 8 March, replacing Arthouros Zervos of Greece, who announced his retirement from the post in February after 12 years of service.

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