emissions

Ed Miliband’s comments on energy in his Labour party conference speech on Tuesday have profound implications for policy. The immediate focus will be on the suggestion of a price freeze lasting until 2017. The industry will no doubt focus on the implications of cutting profits and the question of what happens if world prices rise. Some might also suggest that a hard freeze will not only deter new investment, but also lead to some companies exiting the business with the net effect of reducing competition. Mr Miliband clearly believes there is profiteering but he has not published the evidence. The Labour leader should and there needs to be a full competition inquiry. It may well be that if there is profiteering a price freeze is not the only nor the best solution. Read more

The news that Areva and the Chinese company Guangdong Nuclear Power Group have pulled out of the bidding for the Horizon franchise to build some of the UK’s next generation of nuclear power stations was unsurprising. Areva is not an operator of nuclear stations and the government is reported to have made clear to the companies that while Chinese investment was welcome, a Chinese operator was not. Read more

Images provided by NASA

Evidence from the American space agency NASA published at the end of July shows the remarkable and disturbing degree to which Greenland’s ice cap has melted.  Taken in combination with extreme weather conditions in the US and Asia over the last few months, what is happening in Greenland raises again the unresolved issue of climate change and what should be done to mitigate the associated risks.  But the traditional approach of gradually reducing emissions by changing the energy mix may no longer be a viable option. Read more