Power Group Online Article |  | |
11 November 2003 - Investment-grade debt ratings on European wind power projects are possible, but such schemes face considerable challenges, according to a report released today by Standard & Poor's Ratings Services.
"Wind power is relatively uneconomic compared with other energy generation technologies, and so projects are largely dependent on government and regulatory financial support," said Standard & Poor's Infrastructure Finance credit analyst Jan Willem Plantagie. "The risks attendant upon wind forecasting, however, are very hard to mitigate, and this presents a significant concern."
The report outlines Standard & Poor's analytical approach to wind power projects. It also examines the impact of government polices, technology and operations, wind resources, and contractual and finance structures on projects' credit quality.
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