Christopher Walker examines the major disruptions for investors in wind power recently, as three major players pulled out of projects. He looks in detail what this means and whether the sector has reached its peak. He interviewed Frederic Blanc-Brude, director of EDHEC Infrastructure and Private Assets Research Institute, and quoted him in the article: “If you integrate the costs of storage and the costs of development into your business case, then it is hard for wind to stack up in a country like the UK where there is already such significant capacity.”
“For Blanc-Brude, the UK has specific circumstances that would make this necessary. “In our infraMetrics database, the equity risk premia of wind power in the UK have increased from 400bps to 500bps since 2019. That’s the premia investors require for the risk they take on the investment.” But, he concludes, “it could be different in other markets. Each has its own framework and level of saturation.”
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