State-controlled banks such as Royal Bank of Scotland and Lloyds Banking Group should be forced to invest in renewable energy schemes, helping to kickstart a transition to a lower-carbon economy, Lord Browne of Madingley writes today.
In an exclusive interview with The Times, the managing partner of Riverstone Holdings, the private equity firm, and former chief executive of BP says that the Government’s commitment to build 25 gigawatts of offshore wind generating capacity by 2020 — equivalent to a fortyfold increase from present levels — is an “ambitious but achievable” target.
“The biggest obstacle is lack of credit,” he says. “This could be alleviated by directing state-controlled banks to lend more to projects in the supply chain and by working with the European Investment Bank to speed up implementation of its programme of green lending.”
Britain has 2,537 operational wind turbines capable of generating 3.6 gigawatts of electricity. However, plans to build new wind energy schemes have been hit by restricted access to finance over the past 18 months. Weaker oil prices have also undermined the economics of the industry.
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