London Research International

FOR IMMEDIATE RELEASE

MANY EU COUNTRIES NEED TO TAKE URGENT FURTHER ACTION TO CREATE A BETTER INVESTMENT ENVIRONMENT TO MEET THEIR 2020 RENEWABLE ENERGY TARGET

London, United Kingdom, Thursday, 16 October 2008 - According to new research, The European Renewable Electricity Sector 2008: A Country Comparison of Risks and Opportunities, published by London Research International (LRI), many EU countries may have a hard time attracting sufficient investment in renewable electricity developments to meet their ambitious EU-mandated 2020 20% renewable energy (RE) targets.

The large increase in RE required by some countries to meet their EU 2020 targets demonstrates the need for increased investment in this area. For instance, in 2005 the contribution of RE to final energy consumption in the UK was just 1.3%, well below its share of the 2020 target of 15%. To reach this target the UK would require a ten-fold increase in the contribution from RE sources. Many other countries likewise require significant increases in RE production. Renewable electricity will need to play a large role in meeting the EU's 2020 targets and yet many countries have not created a good environment to drive the needed investment.

Other main findings from the research include:

The greatest opportunities for the expansion of renewable electricity generation, provided by the need for investment in power generation and the government incentive systems, are in Greece, Spain, Portugal and Germany.
The lowest risks to renewable electricity investment are in Denmark and Germany followed by Spain and France.
Risks are higher in the new EU member states of the Czech Republic, Hungary, Poland and the Slovak Republic than others.
Belgium, the UK and Italy will all require additional investment in power generation, but planning risks and the lack of an attractive incentive scheme such as a feed-in tariff (FIT) system are not helping investment in renewable electricity generation to grow. The tradable green certificate (TGC) incentive schemes they currently have are considered not sufficient.
Risks in Greece are relatively high particularly in respect of grid access and planning permission. However, the country provides a high level of opportunities and hence if the Greek government takes steps to reduce the existing risk level, a faster growth in the RE sector will follow.
Growth in renewable electricity investment in Denmark could be limited, despite its relatively attractive incentives, due to relatively weak power market opportunities.
Apart from large hydro, the technologies for renewable electricity generation that are most established are biomass and onshore wind.
Advanced forms of biogas, such as anaerobic digestion (AD), hold the potential to follow biomass as an established generation technology across the EU.

- ENDS -
For more information, contact:
Teruhiko Tsumura or Richard Carlson
London Research International Ltd, Elizabeth House, 39 York Road, London SE1 7NQ, UK
Tel: +44 (0)20 7378 7300, Fax: +44 (0)20 7183 1899
Email: t.tsumura@LondonResearchInternational.com
www.LondonResearchInternational.com

Registered at London Research International Ltd., No. 5004849 (England and Wales)

Note to Editors:

For The European Renewable Electricity Sector 2008: A Country Comparison of Risks and Opportunities London Research International (LRI) developed a series of indices that provide a detailed rating of all of the key areas related to investing in the renewable electricity sectors of 15 EU member states. The research is unique in its use of multiple measures to develop five indices, which accurately and numerically evaluate the risks and opportunities of each member state's renewable electricity sector. A sixth non-numeric index provides an analysis of the emerging and established technologies that are currently adequately supported through government incentives or have the potential for growth. The opportunity indices measure government incentives and power market demand and also review established/emerging technologies in the sector. The risk indices measure political will, grid connection problems and planning permission challenges.

London Research International Ltd (LRI) is a rapidly growing provider of international research, consulting and marketing services. Clients include major international companies, research institutions and government offices. The European Renewable Electricity Sector 2008: A Country Comparison of Risks and Opportunities is the first in a series of four energy-related research projects that LRI is planning to undertake. It is planned to update this publication on an annual basis in order to provide a benchmark against which to measure the progress of the EU member states in achieving their commitments to increase the share of renewable electricity to their total consumption for use by government departments, opinion leaders, educational institutions and environmental groups. The research can also be used as a guide by institutional investors to identify investment opportunities and assess the level of risk and attractiveness associated in this sector across the EU.

Teruhiko Tsumura is principal founder and Managing Director of LRI. He has implemented engineering and consultancy projects in more than 30 countries in Asia, Europe, Africa, and North and South America. He spent 15 years as a senior manager and economist for Pacific Consultants International, a leading engineering consulting firm in Japan. He has also worked at the UN in New York and represented the Japanese government at international conferences sponsored by the World Bank, the OECD and other international organisations. He has an extensive network of high-level business contacts in Japan and the UK.

Michael Prior, LRI's senior energy adviser, is an energy and environmental economist with 30 years' experience with the World Bank, OECD, SIDA and IEA. He was director of the Stockholm Environmental Institute in York between 1991 and 1993, and director of the Energy Restructuring Group in Poland in 1996 and 1997. He has worked widely in the CIS and Bulgaria, Estonia, Romania and Slovenia. He has advised international corporations on fuel supply issues at strategic and operational levels and on business acquisition programmes. He is the author of a number of publications for professional organisations.

Dr. Shizuka Oshitani-Alcoe is Director of Research. She has worked on a number of research projects concerning the European energy market and environmental issues. She graduated from the University of Essex with a PhD in Government where she compared British and Japanese climate change policy. Before joining LRI, she worked with the United Nations Environmental Programme/Regional Office for Asia Pacific, and she also lectured at the Kobe City University of Foreign Studies.

Dr. Ryoko Matsuno is Senior Researcher and is also responsible for the operation of the LRI Chemical Regulatory Consulting Unit. Her expertise includes the regulation of toxic chemicals in international law, EU and English/Welsh law and she is arguably one of the most knowledgeable consultants on REACH internationally at present. She has a PhD in Environmental Law from the University of Kent at Canterbury, UK. Before joining LRI, she worked in several organizations where she was involved mainly in issues related to toxic chemicals.