I listened to the United Kingdom’s Energy Minister, Mr Ed Davey, speak on the radio about the proposals for nuclear energy. He spoke about the need for investors to see a clear return on their investment within a settled and predictable framework and that by putting a levy on electricity bills investors in the nuclear industry would see a clear guaranteed return (guaranteed by the consumer no less) and would therefore invest in the building of new nuclear electricity generating plants. It is a statement which sounds logical but is full of inaccuracies and has a great measure of hypocrisy.
First, the need for all energy companies to have a settled and clear framework is paramount, as Mr Davey recognises. That is not what the government has provided when it comes to renewable energy. The PV industry has been a very uncertain place; many PV companies have closed down or gone into bankruptcy pure as a result of government generated uncertainty. The solar thermal industry has fared even worse. There has been stop start of tiny incentives, periods when there are no incentives, schemes created and revised several times before they come into fruition and then the coming into fruition has been delayed.
Mr Davey says the right things but he and his Department to not do what they speak. It is impossible to reach any conclusion other than Mr Davey and his civil servants are grossly incompetent or that they speak with forked tongues. Certainly no owner or investor in any of the solar technologies will invest on the basis of what they say or publish. The government has lost credibility on energy policy.
When it comes to the nuclear industry Mr Davey seems to think that all investors want is a guaranteed stream of income from their investment. In fact growth is in the long term more important than income. If an investor wants income he can invest in bonds. If you invest in a nuclear power plant you want income and growth.
Now I see very little opportunity for growth in your investment in a nuclear power plant. There will always be pressures to keep the price of the product low, and pressures to make savings which might well conflict with the very best safety practise. Furthermore who wants to buy shares in a nuclear company? The down side risk is tremendous, as can be seen by credit agencies who are now degrading the credit ratings of the major nuclear energy generators. Nuclear power is about as attractive as a topic for investment as tobacco or asbestos.
If the government sticks to their plans I cannot see there being any willingness to invest in nuclear power, or solar, for that matter, which will leave our nation short of light and heat in years to come, which is a shoddy legacy for the future.
Filed under: carbon emissions, electricity, energy, global warming, solar, solar panels Tagged: | Ed Davey, energy policy, investment in nuclear technology, nuclear energy
In my view lack of energy policy is like most aspects of Government policy, decsions are made by ministers without technical experience, industry experience, professional experience or, in fact, experience of anything other than PR or politics.
For all the leadership and ‘know how’ they bring, our PM and dPM might just as well have inherited their positions. The alternative Millibands were little different. These people just want power but offer nothing in return.
Comparing political parties now is like comparing Pepsi to Coke.
Government ministers are far too reliant on advisers. They lack personal committment to any policy and that is why energy policy is such a shambles.
Even though I disagree with the policy of using wind turbines for electricity, if the relevant minister had faith and technical knowledge he might have a chance of convincing me that it was a reasonable strategy.
Instead, we had chumps like Huhne trying to convince a far from gullible electorate that out electricity bills will not really increase, it will only seem like they’re increasing!
I fear we must look to controlling and generating power in our own homes. That means PV, Solar etc. At least that way we will be able to survive if the grid really does fail and the lights go out.