Daily Telegraph

UK 'best country' for wind power investment
By Tessa Thorniley (Filed: 16/02/2004)

Britain has become the "most attractive national environment for wind
power", according to consultancy Ernst & Young.

A wind farm in Scotland. Ernst & Young praised Britain's 'unexploited wind
resource and strong offshore regime'
Strong government backing and financial support for generators of renewable
energy meant the UK pipped Spain to the top spot on Ernst & Young's
renewable energy country attractiveness index.

Jonathan Johns, who leads Ernst & Young's renewable energies group, said:
"Since we last published our index in October 2002, the Government has
published details of the Renewables Obligation extension to 15pc and the
round two offshore wind farm extension. This has underlined a serious
commitment to wind power by the Department of Trade & Industry."

Energy regulator Ofgem estimates that the renewables obligation trading
scheme, under which suppliers must buy an increasing amount of their power
from renewable sources, will provide £485m of subsidies to companies
generating power from wind farms this year.

In a surprise move last week, Ofgem criticised government proposals
<http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2004/02/14/cnofgem14
xml> to extend subsidies for renewable power generators in remote areas of
Scotland as "unnecessary and misguided" and likely to push up consumers'
bills.

According to the British Wind Energy Association, the UK - particularly
Scotland - is the windiest country in Europe. Ernst & Young said Britain's
high ranking in the index this year was also due to "unexploited wind
resource and a strong offshore regime". The availability of capital grants
for first stage offshore projects acts as a further incentive for investors.

Spain is the overall winner on the renewables index, outperforming the UK
for its potential for solar and biomass investment, followed by Germany and
the US. Ernst & Young said investors found Britain's solar sector "too
expensive" with "low resources".

To meet the Government's target of generating 15pc of electricity from
renewable sources by 2015, the BWEA estimates capacity to generate 8,000
megawatts - enough for a fifth of British homes - is needed. So far, it has
installed just 640 megawatts of wind power capacity.