David Hunter of McKinnon & Clarke believes the plans outlined in last week’s coalition document could be derailed. “The idea of an offshore grid and other major renewable projects sound good, but who will put money in without huge public subsidy?” he said.
“And so the next question is: can we really afford to put so much subsidy into just one industry? We will realistically have to scale back offshore wind projects. If we get to 25 to 30% renewable energy production, that will be the absolute maximum we will ever reach before costs become astronomical. So how can anyone invest in it in the first place?
“We’re focusing far too much on renewables at the expense of nuclear power. The question that’s being avoided is that renewable energy will never meet our 24/7 energy needs and if we really want a low carbon future, nuclear is the route that will provide it. But when you talk to most MPs, they are eager to praise renewables only. We at McKinnon & Clarke believe that its great to have green energy in the mix but it’s not the only game in town”
Mr Hunter also commented on the coalition’s general plans and likelihood of its stability when it comes to the world of energy. ” I think the Tories have clearly won most of the battles on energy and their plans, such as a floor on carbon trading, prove that. I think there’s some concern regarding nuclear that Mr Huhne’s heart is so clearly not in it that he’s certain to put off some energy supply companies from investing.
“Where there’s a market the government is making all the right noises, but there are elements of doubt in policy, they want more power stations but there’s much left unanswered. Hopefully we’ll get more detail in the coming weeks,” he concluded.