Sunday, January 10, 2010

UK Offshore WInd Farm Announcement

UK announced massive plans to develop offshore wind farms in the same lines as the North sea offshore development for oil and gas in 1970s. Ambitious plans - yes. Are we in a different world compared to 1970s that allowed the development of offshore oil/gas exploration/development - maybe. Are the business drivers to justify such a high expenditure similar? I doubt. Climate change and cost of carbon cannot be the sole driver to justify such massive investments. People would rather question the validity of man made climate change and look out for cheaper options. Back in the 70s oil crisis and looming uncertainty for middle east oil was hanging as a sword. Today, it is a lot murkier to come up with a slam dunk argument to justify such high costs in the name of climate change and global warming and carbon free world. I am hence skeptical. Wait and see what happens. It is an announcement after all.

1 comment:

Unknown said...

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