The government's wind energy plans have received a major blow after the world's biggest investor in wind power, Spanish energy giant Iberdrola, announced it was to cut its investment in the UK by £300m.
According to Times reports, the company is to cut its budget in the UK by 40 per cent, equivalent to the investment required to build a wind farm capable of powering 200,000 homes.
Xabier Viteri, chief of Iberdrola Renewables, whose Spanish parent company owns ScottishPower, told the paper that the decision was the result of the economic crisis. But he added that problems specific to the UK could force the company to invest in wind projects in other countries as an alternative.
The move is the latest in a series of blows to the UK's wind energy programme that have undermined the credibility of the government's claims that the country is an attractive location for renewable energy investment.
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