Investors are deserting a wind power sector which until now had benefited
from twin climate and energy concerns, as a debt squeeze forces developers
to re-think projects. The sector has enjoyed explosive growth, at more than
30 percent per year during the past five years, partly on aggressively
priced project finance debt. Now that debt is more expensive, if available
at all, harming the economics of wind farm financing. Weaker demand for wind
turbines, especially from smaller project developers which rely on debt
finance, will hurt manufacturers. "You're going to see a massive decline in
turbine orders," said Tom Murley, the head of the renewable energy team at
private equity investors HgCapital.
Tuesday, October 28, 2008
Reuters reports demand for wind turbines has gone slack.