By Louise Downing, Bloomberg:
Britain’s Green Investment Bank plans to channel funds for offshore wind projects into facilities that are already operating and probably won’t fund the more risky construction phase.
Ian Nolan, head of origination at the government-backed institution, said the 3 billion pounds ($4.8 billion) set aside as the bank’s initial capital isn’t sufficient to allow state funding for construction projects. The bank expects to have full borrowing powers only after 2015, assuming government debt is falling as a portion of economic output.
The intention to focus on financing wind farms only after they’re operating is a “surprise” to the industry, which hoped the institution would back projects before they’re built when risks are higher, said Angus McCrone, a senior analyst at London-based researcher Bloomberg New Energy Finance… Read more