Economic woes to hit renewable energy projects

Tuesday 30 August 2011 05:00 EDT
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Economic uncertainty amid the slowdown in the global recovery and the eurozone sovereign debt crisis is likely to threaten investment in renewable energy projects, an Ernst & Young report is set to warn today.

The consultant said that investors in renewable energy installations were seeing the cost of financing such projects rise, especially in countries most exposed to uncertainties. In some cases, that might mean projects are cancelled or delayed.

In the UK, which is regarded as being less risky than some parts of the eurozone, Ernst &Young said investors were less worried about financing issues, but warned that planning complexities and regulation are continuing to hinder large-scale, renewable energy developments.

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