The French energy giant behind Britain’s Hinkley Point C new nuclear project could be in line for a £9bn bonanza as measures to fix the broken carbon market take hold. EDF, which generates nuclear power in the UK and France, is expected to be first in line to reap the benefit of rising carbon market prices which could drive its share price up by over a third, according to analysis from Jefferies. The price of carbon has rallied almost 75pc to 8 euros a ton from just over 4.50 a ton in April, thanks to rising confidence that European politicians will introduce policy reforms to correct an almost decade-long downturn. Analysts believe that planned reforms to the market could result in the carbon price rising by a further 25pc to 14.70 by 2020. Meanwhile British power giants including SSE and Drax are preparing to lobby Government to extend the UK’s carbon tax in the forthcoming budget. In a letter to Chancellor Philip Hammond, the two generators have called for the Carbon Price Support to remain in place beyond April 2021. The Government is expected to tackle the thorny issue as part of the clean growth plan which it launched earlier this month.
Telegraph 22nd Oct 2017 read more »
Philip Hammond, chancellor, has been urged to renew the UK’s commitment to carbon pricing in the Budget next month or risk allowing a revival of coal-fired power stations. SSE, the largest UK utility by market capitalisation, has warned the chancellor that energy companies need clarity on his approach to taxing carbon emissions if they are to invest in a new generation of gas-fired power stations. In a letter also signed by two other energy companies and an environmental group, SSE and its allies said a “robust and strong carbon price” was the best way to meet government goals to combat climate change without further regulation and with fewer state subsidies.
FT 22nd Oct 2017 read more »
Guardian 23rd Oct 2017 read more »