Economic woes hit renewables

Economic uncertainty amid the ongoing slowdown in the global recovery and the eurozone sovereign debt crisis is likely to threaten investment in renewable energy projects, an Ernst & Young report warned today.

The consultant said that investors in renewableenergy 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.

E&Y said investors in the UK were less worried about financing issues but warned planning complexities and regulation continued to hinder large-scale renewables developments.