Tuesday, 26 October 2010

Are UK companies missing out on the Wind Energy gold rush?

“I want us to be a world leader in offshore wind energy,” said David Cameron as his government estimates that 70,000 jobs will be created in this sector and announces support to the tune of hundreds of millions of pounds. The problem is - UK companies appear to be missing out of what promises to be something of a "gold rush" in the market.
Of the 120 UK registered Wind Energy companies involved in the market:
  • 64 are in trouble
  • 78 are vulnerable to takeover
  • A third are making a loss
Are these companies being squeezed out of the market by larger foreign competitors enticed here by generous government subsidies and grants or are native companies in this market just not dynamic enough to compete? This week Skycon, a Swedish based manufacturer failed with the loss of 120 jobs in Kintyre - all after receiving a £10m cash from the Scottish Assembly.

With the UK economy so desperate for growth sectors and job creation is the government better using tax payers money to entice big foreign companies to the UK market or use development grants to give UK companies a chance to compete?

Click here for more information about Plimsoll's latest assessment of UK Wind Energy companies


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