Monday, 19 December 2016

Why Investors Are So Reluctant To Build New CCGT Capacity

Paul Homewood

....And it gets worse! All government projections assume that the carbon price will have to carry on rising sharply after 2030. The BEIS study, for instance, assumes it will rise to £200/tonne by 2050 (all at 2014 prices).
Even if a new build CCGT can manage to turn a profit in the early years, it would quickly become totally unviable once carbon pricing starts mounting up.
Given all of these obstacles, it is little wonder that investors are not prepared to finance new projects."

No comments:

Post a Comment