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Clean cheap energy businesses 'struggling to get financial backing' - 12/10/2009

Consumers looking to switch energy to cleaner resources may be disappointed to hear the Ethical Investors Group believes many clean energy firms are struggling to get backing.

Lee Coates, director of the organisation, said the level of rhetoric in support of renewable energy is not being followed up by actions, primarily because few banks understand the technology being developed.

Success could lead to consumers being able to compare energy prices more effectively and having greater choice, but Mr Coates said due to the lack of funding, many projects are finding it difficult to get started.

Mr Coates said: "There's lots of hot air [and] there's lots of talk about it, but then not a lot happens because banks don't understand it and therefore they are just not interested."

The UK is committed to generating 15 per cent of its national electricity demand from renewable sources by 2020, but in 2006 the figure stood at just 1.5 per cent, according to the government's Renewable Energy Strategy.

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