Interesting situation that not only have SSE pulled out of the Scotland to Norway line, or should we more correctly say Norway to Scotland, but they are also pulling out of their Swedish Wind commitments. The other investors, Sweden’s Vattenfall and Norwegian companies E-CO Energi, Agder Energi and Lyse, in the undersea cable are still on track but one does now look at an entirely ex UK development. The attraction is surely for Norway to sell it’s energy at high prices to Scotland as and when convenient. The reason that SSE cite for the pull out is financial uncertainties on subsidy levels. SSE added that a lack of clarity on interconnector regulation contributed to its decision to withdraw from the project.
One can reasonably conclude that the financial market is uncomfortable with any industry whose profitability is based almost entirely on subsidy. This results in a far higher cost of money and shorter lending periods. Not a situation that endears institutions to long term investment.