Uncertain times for energy

 
Due to a number of factors, both the renewables and the conventional energy sectors are, to a certain extent, on hold at the moment. These factors are, in no particular order:

• The Energy White Paper (expected in the Spring, but no date as yet, although the budget did confirm the carbon price floor);
• The wait for announcements on the Renewable Heat Incentive ("RHI") (probably June);
• Confirmation of the Government's plans for the Feed in Tariff; and
• The nuclear problems in Japan.
  

As a result, banks want to wait and see whether they should proceed with lending on offshore windfarms and some other projects, commercial scale solar pv farms are on hold, the ground source and biomass heat industry are on hold, the air source industry is waiting to see whether it will even be covered by the RHI and, finally, no one knows whether the nuclear power station building programme will continue, and whether it can be afforded and banked if it does. The good news is that the waste to energy sector seems to be recovering from the spending review last year with schemes moving forward again, although a number of them no longer have PFI credits.