By Mathew Carr - Sep 14, 2010 4:24 AM PT
Planned investment by European utilities and RWE AG’s cancellation of a coal plant in Poland demonstrates that emissions trading works, according to an analyst at the investment bank of Barclays Plc.
One European utility wants to boost its renewable energy capacity to 21 gigawatts by 2020 from 2.2 gigawatts this year, Trevor Sikorksi, a London-based analyst at Barclays Capital, said in a Sept. 13 research note, citing a speech at one of the bank’s conferences. He didn’t name the company.
Essen-based RWE plans to halt construction of the 800- megawatt coal-fired power plant near Katowice, southern Poland, showing “how extensively the investment behavior of companies in large-emitting sectors has changed with the introduction of the European Union emissions-trading system,” he said. The program started in 2005.