Blowing hot and cold

Across Europe, government enthusiasm and support for wind energy will dictate the ability for wind project sponsors to refinance project loans via the bond market. Jan Willem Plantagie of Standard & Poor’s explains

The growth of installed wind capacity testifies to the continued popularity among utilities of wind for producing electricity from renewable sources. Interest in wind is driven by the need to obtain clean power and a supportive tariff regime. But while wind generation’s zero fuel costs are attractive to investors, wind farms are subject to significant wind forecasting risk. Nevertheless, financing wind park construction has become increasingly acceptable to the banking community – and also