P. 1
Energy - Beyond Oil

Energy - Beyond Oil

|Views: 186|Likes:
Published by dizzyman2008
Alternative Energy
Beyond Oil
Peak Oil
Alternative Energy
Beyond Oil
Peak Oil

More info:

Published by: dizzyman2008 on Sep 02, 2012
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





In terms of an investor view of the electricity market and revenue issues, the
long timescales are certainly an issue. As noted earlier, it would be five years
from the announcement of a more positive policy until the likely date of a final
date of power generation, and then an operating lifetime of perhaps 60 years.
That represents a remarkably long time over which to project likely revenues
and over which to judge the likelihood of any policy changes. Given the recent
level of major change and intervention in the electricity market, it is perhaps not
surprising that potential investors in nuclear are not rushing to place their money
in nuclear projects.An investor looking at an outlay of perhaps £2 billion would
have to take a very deep breath before making that sort of commitment in the
absence of any reassurance from government that the goal posts are not going to
move in some unpredictable and unhelpful way.
Fuel and power prices are showing increasing volatility of late, and that works
in favour of the nuclear industry, because of the price stability discussed earlier.
But the energy sector in general—and nuclear issues in particular—are highly
political. Governments can take a politically-motivated decision to phase out
or to stop at any moment in time, and that knowledge also affects investor
confidence. Public recognition by the government of the role that nuclear could
play in delivering energy policy benefits (in particular with regard to climate
change) would go some way towards reassuring investors that policy will not be
changed ‘on a whim’.

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->