A new report from analysts Ernst & Young has determined that the UK’s energy market has precipitated fundamental diversity weaknesses by discriminating against nuclear and clean coal investment.
Michael Cupit, energy director for Ernst & Young points out that although the economic case for nuclear energy had rarely lived up to expectations, it still appears sound and that risk could now be better managed by private operators.
The report is critical of UK policy focus on renewables and has specifically identified the renewables obligation programme as a method to subsidise heavily a single method of reducing carbon emissions rather than including all carbon free sources of energy. The UK’s Future Generation Mix report also criticises the government for a lack of long-term clarity on key aspects of policy.
