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Energy Companies Axe UK Renewable Projects

Nicholas Megaw, Financial Times

Energy companies have warned that 15 “illogical” policy changes introduced by the new Conservative government since May have made some renewable power sector projects “uninvestable” — causing them to cancel billions of pounds worth of investment.

RWE Innogy — the renewable energy unit of Germany’s RWE Group — has scrapped nine onshore wind projects in England in the past four months, halting investments of more than £250m. Although onshore wind is a core growth area for the business, it has instead switched money earmarked for the UK to projects in the Netherlands and Germany.

Mike Parker, head of onshore wind at RWE Innogy UK, says: “Investors are worried now about investing in the whole UK energy market, it’s not even just in the renewables space.”

In addition to the nine cancelled projects, RWE Innogy has also put its other UK projects on hold for the foreseeable future. “People will spend their money in places where there is a stable investment”, says Mr Parker, adding that those places no longer include Britain.

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