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UTILITY WEEK | 26Th sEpTEmbEr - 2nd ocTobEr 2014 | 19 Finance & Investment This week Commissioner backs Hinkley Point case Formal decision granting European approval of hinkley's subsidy support expected within weeks The Hinkley Point nuclear pro- ject has taken a significant step towards a positive final invest- ment decision, with full state aid approval expected within weeks. A spokesperson for Euro- pean competition commissioner Joaquin Almunia confirmed on Monday that he has made a positive recommendation on the case, five days aer Utility Week reported that energy sec- retary Ed Davey held crunch talks with him over the deal. "Vice president Almunia will propose to the College of Commissioners to take a positive decision in this case. In principle a decision should be taken within this man- date," said Commission spokesman Antoine Colombani. Almunia's recommendation is not a final decision but it will be taken into account by the College of Com- missioners during a further consultation phase on the project's compliance with competition rules. A statement from project developer EDF Energy welcomed the approval as "another positive step". If its £16 billion nuclear project receives an official all-clear from the Commission, a final investment deci- sion is expected shortly thereaer, with construction to begin next year. The approval would be the first of its kind for "new nuclear" in the EU, meaning the outcome of the case has wider implications for investment in nuclear projects across Europe. The Commission said a final decision would be made before the end of the year, but it is widely expected to be decided before the current term of office expires at the end of October. JA pan-UTILITY Deals with utilities boost Kier results Construction and services company Kier has credited its multiple deals across the UK's utilities sector for its strong first- half financial results. A spokeswoman for the Kier Group told Utility Week that the company's overall success was underpinned by "a ra of strong contracts, particularly in the water sector". She added the company has also benefited from a strong presence in the energy sector, with Hinkley Point C and Sellafield work in the pipeline. Kier Group chief executive Haydn Mursell said: "We are keen to build on this success by increasing our presence in other core utilities markets… and see substantial opportunities… as the UK prepares to build nuclear power stations again." The company reported H1 revenue of £3 billion, up more than 50 per cent from H1 2013, while underlying operating profit increased almost 60 per cent on the year to £88 million. EnErgY Sleaford biomass plant handed over Investment manager Glenn- mont has formally accepted the handover of the 38MW Sleaford straw-fired renewable energy plant in Lincolnshire. The biomass plant, which will also provide free heat to local sports clubs and commu- nity facilities, now forms part of the fund's 300MW renewable energy portfolio, which includes biomass, wind and solar power in France, Ireland, Italy, Portugal and the UK. "Glennmont has commit- ted itself to leading the way for institutional investors to realise exceptional value from the renewable energy market, and Sleaford is an excellent example of this," said Joost Bergsma, managing partner of Glennmont. EnErgY Market reacts positively to 'no' The share prices of SSE and Infinis increased on Friday 19 September aer Scotland's push for independence was rejected in the referendum (see Stock watch, below). A positive market reaction saw SSE's share price climb 5 per cent higher than lows of 1,478p seen ten days before the referendum, when polls showed an increase in those supporting the 'yes' campaign. Shares in renewable energy generator Infinis also benefited. Tony Ward, head of power and utilities at EY UK and Ireland, said the 'no' vote has removed "a major uncertainty" for those considering "significant capital investments in Scotland". Hinkley: decision expected by end of October Stock watch 1560 1540 1520 1500 1480 SSE SharE pricE, 17 - 23 SEptEmbEr Sep 18 Sep 17 Sep 19 Sep 22 Sep 23 240 235 230 225 220 215 210 infiniS SharE pricE, 17 - 23 SEptEmbEr The share prices of ssE and Infinis rose after Scotland's 'no' vote, announced on 19 september. ssE's share price had climbed by 2.3 per cent from 1,517.05p at Thursday's close to 1,552.10p per share by 9am on Friday. shares in renewable energy generator Infinis rose by 3 per cent, from 216.9p at Thursday's close to 223.4p per share by 9am on Friday. both pared gains slightly in later trading sessions, but maintained a higher value overall. Sep 18 Sep 17 Sep 19 Sep 22 Sep 23