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Utility Week 19th September

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18 | 19th - 25th September 2014 | UtILItY WeeK Finance & Investment Stock watch 1,240 1,222 1,220 1,180 1,160 1,140 BG Group 19 Aug 26 Aug 2 Sep 16 Sep the share price of oil and gas exploration and production company bG Group has traded steadily lower over the past fortnight in line with persistent losses in the price of brent crude. brent came under strong downward pressure following disappointing economic data from China which could curb demand, with prices falling below the important psychological pricing level of $100/b. On September 15 brent closed at its lowest level for two years at $96.65 per barrel. This week UK renewables hit by regulatory 'storm' the UK falls to seventh place in a league table of renewable investment attractiveness The UK has fallen further in a league table of renewable invest- ment attractiveness because of a "perfect storm" of regulatory woes for solar investors, accord- ing to consultants at EY. In its annual global league table of investor attractiveness, EY showed the UK has fallen to seventh place, its lowest level for five years. "What we are seeing is a 'perfect storm' of reasons prompting a fall in the appeal of the UK's renewables market," said EY's environmental finance leader Ben Warren. "The booming UK solar sector, one of only six mar- kets globally to surpass the 5GW installed capacity, was caught by surprise by the government's consultation in May. Legal challenges and investor petitions have been launched in response, urging the government to give the sector more time and greater policy stability to compete with conventional fuels," he said. In addition, around 60 per cent of the available funding has already been spent, Warren said, leaving investors and developers concerned about budgetary constraints for future projects. Policy changes also weighed on the attractiveness of Italy and Spain, EY said, with both falling several places down the index to 15th and 22nd respectively. Taking the top spot on the league table was China, beating the US, which this year came in second place. Germany, Japan and Canada held their positions in third, fourth and fih place respectively, while India overtook the UK to claim number six in the table. JA envIrOnment Global Commission urges focus on low- carbon investment A renewed emphasis on low- carbon investment over the coming 15 years could bolster the global economy while reduc- ing the risk of dangerous climate change, a new report claims. The report published on Tuesday (16 September) by the Global Commission on the Econ- omy and Climate claims that $90 trillion will be invested globally in infrastructure, agriculture and energy systems, providing an opportunity to "drive investment in low-carbon growth". "The decisions we make now will determine the future of our economy and our climate," said Lord Nicholas Stern, vice-chair of the Global Commission. "If we choose low-carbon investment we can generate strong, high- quality growth – not just in the future, but now," Stern added. The report warned that com- petitive markets and consistent government policy signals are essential for businesses and investors to create low-carbon jobs and growth. eLeCtrICItY Approval for gas- fired power plant The UK government has approved plans from developer CGen to build a 470MW gas-fired power plant near North Killing- holme in north Lincolnshire. The plant is expected to begin commercial operations in 2016/17, which will help to replace the 18GW of generation capacity slated to close by 2020. Previously, CGen has said the plant will play an important role in meeting demand needs with cleaner power generation because it will be designed to incorporate carbon capture and storage (CCS) and combined heat and power (CHP) capabilities. eLeCtrICItY Green light for RWE windfarm in Wales The UK government has approved plans from RWE Innogy to construct a 96MW windfarm in North Wales. The £100 million Clocae- nog Forest project is the fih Welsh wind power development from RWE's renewable energy arm to be approved by the UK government since January 2013, and brings its total consented onshore wind capacity in Wales since the beginning of last year to 281MW, the company said. An RWE Innogy spokesman told Utility Week that construc- tion is expected to start in 2016, with an operational start date expected 18 months later. The development of the project is still subject to a successful grid connection application, which is due to be made later this year. Regulatory clouds: solar investors surprised 9 Sep

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