15.03.2011

Following the devastating earthquake in Japan and explosions at its nuclear power plants, WIOF Green Energy Performance Fund investment manager New Mellon Asset & Wealth Management (New Mellon) explains how attention has turned to renewable energy sources.

Clean energy stocks are now very much in the spotlight after explosions at three Japanese nuclear power plants. These have prompted concerns that regulators will scale back plans to build nuclear reactors worldwide. China, India, Germany and Britain have said they will review what happened in Japan before moving forward with new nuclear power stations.

German Chancellor Angela Merkel has frozen government plans to prolong the life spans of Germany’s nuclear power plants for three months pending the outcome of an inquiry into reactor safety. Officials in China and India and lawmakers in the U.S. have also called for reviews of their nuclear energy programs.

Developments in Japan will be highly negative for nuclear operators. Worldwide, about 442 reactors supply 15% of the world’s electricity, according to the London-based World Nuclear Association. Renewable energy sources including wind, solar and hydropower account for about a fifth of electricity supply, according to the International Energy Agency (IEA).
Following the risk of nuclear fallout in Japan, political discussions are likely to focus on a rethinking of the use of nuclear power, which may involve discussions regarding a more central role of renewable energy.

The document can be downloaded at: Nuclear threat creates opportunity for Green Energy Investments

 

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