Archive for October, 2011

Breakfast meeting on the future for the UK nuclear industry

Hill & Knowlton will be hosting a breakfast meeting next month (November 2nd) on the future for the UK nuclear industry.  

Organized by the British American Business Energy and Law Forum, the event will welcome an expert panel including Tim Yeo MP and Keith Parker from the Nuclear Industry Association.  Discussion will look at likely domestic demand in the decades ahead, the financial challenges inherent in major nuclear projects, the policy environment for the nuclear sector in a period of rising energy and carbon costs as well as renewed safety concerns about the sector in parts of Europe and Asia, and, the opportunities for UK businesses in overseas markets for developing and supporting nuclear projects.

If you wish to register, you can do so here, or contact the Energy and Industrials team in London.

Conservative Party Conference – Themes from the fringe

So, discussions in the main hall were fairly unenlightening – was debate on the fringe any better?

Aside from the seeing the same faces, and hearing the same jokes four or five times over two days, there were some other recurring elements. The overriding message from pretty much all delegates was the need for clear and consistent signals from government – both in terms of policy and support levels – to investors. Sadly, this does not mean we have reached the happy utopia where industry and NGOs agree. For the former, this means a stable price for carbon over the long term, for the latter, this means long-term targets to cut emissions and deploy renewables that are as stringent as possible.

Discussions around renewables and green industries were much more informed and critical than in previous years, with the cost of meeting 2020 targets a particularly contentious issue – unsurprising given the general economic climate. Offshore wind was singled out for most criticism, with a great deal of suspicion expressed over whether the cost of deployment will come down as the government predicts. With regard to the green economy, the claim that it will create new jobs and help the UK through the global recession were also unpicked – that the jobs will not be new (but will simply be moved from other areas of the economy), and that there will necessarily be losers as well as winners as green industries grow.

Arguments around cost fed into one of the more interesting themes of discussion, namely the social ramifications of current energy policy. The cost of meeting 2020 targets is feeding directly into domestic bills, driving them upwards. Since electricity is a necessity, this hits the poorest  hardest, with the label ‘socially regressive’ applied repeatedly to the current strategy on renewables.  With this in mind, there were also calls for initiatives – particularly the Green Deal – to be targeted at the most vulnerable groups in society such as those living in social housing.

Energy Minister Charles Hendry and Climate Change Minister Greg Barker did their best to dispel the gloom, with repeated assurances that the UK is on the right track. Of course as ministers they don’t have much room to say anything to the contrary, but it is hard not to be swayed by two ministers so obviously on top of – and passionate about – their brief.

Conservative Party Conference – Energy crowded out

Sunday afternoon of party conference is when the host mayor welcomes delegates, a time when all but the party diehards are still travelling to the conference or checking in to their hotels.

The fact that the keynote speech on energy was slotted into the agenda yesterday afternoon tells you all you need to know about the focus of this year’s Conservative Party conference. The economic situation – both at home and across the eurozone – is what the party wants to be seen to be taking action on. Everything else comes a distant second.

Sandwiched between weekend pre-conference coverage, and anticipation of George Osborne’s speech today, it is not surprising that yesterday’s speech took up few column inches – The Guardian and the Daily Telegraph being the notable exceptions.

So, what did Energy Minister Charles Hendry have to say? And more to the point, was any of it new? Again we heard about how much generating capacity is due to close in the next decade, and about how much investment is needed in energy infrastructure. And again we heard about a new generation of (unsubsidised) nuclear power stations, and the jobs this would create.

In fact the creation of thousands of new green jobs, and revitalisation of former industrial cities, was a theme running throughout the speech, coming up in discussion of offshore wind and carbon capture. The fact that these cities are exactly the Labour heartlands that the Conservatives will need to make inroads into to win the next general election is mere coincidence…

In all then, nothing we haven’t heard before. Perhaps the fringe is where the fresh ideas are – watch this space…