Future of the 1 GW London Array in Question: Backers Ask European Investment Bank for Bailout
photo: Chrishna via flickr
The London Array certainly has had a bumpy ride so far—some backers pulling out suddenly, new ones coming aboard in the nick of —and here's another bump in the road which again puts the future of the project into question:Two of the project's backers have approached the European Investment Bank for a bailout. E.ON and DONG Energy say that estimate £3 billion ($5.47 billion) is needed to complete the 1 Gigawatt offshore wind farm off the coast of southern England.
Falling Electricity Prices, Lack of Government Support
The reason the London Array has to go to the EIB with its hand out? Collapses in electricity prices over the past year mean that projections on how much money the project with make have decreased, and the credit crunch/recession hasn't exactly decreased financial uncertainty and risk. Additionally, the UK provides less government support for offshore wind projects than can be found in elsewhere in Europe.
E.ON has said that it does expect to make a decision on whether to proceed with the London Array until the summer.
via: The Guardian
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