The Law of Unintended Consequences
17/07/2009
The Government’s introduction in the Budget on 22 April of an enhanced ROC regime for offshore wind projects commissioning in the near future was intended to stimulate investment in the face of rising costs. It clearly did its job – within a month of the announcement DONG Energy, E.ON UK and Masdar made commitments to build 1 GW of new capacity which had apparently been under threat as a result of rising capital costs. However, as always one needs to be aware of the potential for unintended outcomes – in this case there appears to be the possibility that the measures could result in a longer term reduction in both the value of ROCs and the amount of new renewable capacity brought online.
The Law of Unintended Consequences available to read in full.
