Profit from the UK's New Green Government

Cameron's Gov't Touts Cleantech

Written by Brian Hicks
Posted May 17, 2010

The new UK Prime Minister, Conservative David Cameron, has wasted no time in rattling the clean energy cage, saying:

I don't want to hear warm words about the environment. I want to see real action. I want this to be the greenest government ever... I intend to make decisions put off for too long to fundamentally change how we supply and use energy in Britain... To give the power industry the confidence it needs to invest in low carbon energy projects.

As a Green Chip investor, you have to love it!

Especially since those words came just days after the new coalition government reached an agreement on a new low carbon and "eco-friendly" economy.

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Take a look at what this thing includes:

  • The establishment of a smart grid and the roll-out of smart meters

  • The full establishment of feed-in tariff systems in electricity

  • Measures to promote a huge increase in energy from waste through anaerobic digestion

  • The creation of a green investment bank

  • Measures to encourage marine energy

  • The establishment of a high-speed rail network

  • The cancellation of the third runway at Heathrow

  • The provision of a floor price for carbon

  • Measures to promote green spaces and wildlife corridors in order to halt the loss of habitats and restore biodiversity

  • Mandating a national recharging network for electric and plug-in hybrid vehicles

  • Seek to increase the target for energy from renewable sources

Bottom line: This new government across the pond is going full force on clean energy — and we're going to profit from this every step of the way...

Making Your Money Offshore

The UK's new energy transition will smoke out a ton of opportunities in the coming months and years. But the first round will likely focus on those clean energy options that are already underway, like wind energy development.

According to RenewableUK (formerly the British Wind Energy Association), the UK currently has 262 operational wind projects providing more than 4.5 gigawatts — enough to power the equivalent of 2.53 million homes.

But the big growth opportunity for wind in the UK is offshore wind.

Last month, offshore generation capacity hit 1 gigawatt after a new project by Dong Energy and E.ON (F:EOAN) (EONGY.PK) started producing power. This elevated the UK as the leading nation for installed offshore wind power.

In January, the government awarded licenses for 32 gigawatts of projects — yes, 32 gigawatts! Statoil ASA (NYSE:STO), RWE AG (RWEOY.PK), and Centrica Plc (CPYYY.PK) are just a few that landed some of those licenses.

Meanwhile, wind mainstays like Siemens AG (NYSE: SI), Vestas Wind Systems (VWS: CO) (VWDRY.PK), Gamesa (MCE: GAM) (GCTAF.PK), and General Electric (NYSE: GE) continue to expand their presence. GE actually announced a couple of months ago that it now plans to build a new offshore wind turbine manufacturing facility in Britain.

The UK believes offshore wind can provide 25 percent of the country's electricity demand by 2020.

This is a huge undertaking for our friends across the pond, and certainly a massive opportunity for those who invest in the companies that will facilitate these massive offshore wind projects.

Next week, I'll give you further details on the companies that are likely to make you and I the most money from offshore wind in the UK. But until then, let's take a look at...

An Opportunity You Can Jump on Right Now

While both parties of the UK coalition government have agreed to transition to a low-carbon economy, a strong division still remains over nuclear.

The Liberal Democrats are opposed to the construction of new nuclear plants, while the Conservative Party supports an entirely new fleet of nuclear power plants — so long as it does not include any public subsidies. It's that particular condition that will make any future nuclear integration difficult; at least, compared to what we were seeing with the previous government, which was heavily focused on nuclear.

Of course, here in the United States, it is highly unlikely that nuclear will not be an integral part of our new energy transition.

Let's face it: Its presence in the energy bill is all but guaranteed. And that's why my colleague, Nick Hodge, has been so aggressive in finding early nuclear plays for Green Chip Stocks readers.

In fact, just last week, Nick alerted us to a company that's about to blow the lid off the nuclear energy renaissance in America. That stock is now up more than 268%. And thanks to the broader market being down today, there's now another chance to get back in below Nick's initial buy limit.

You can get the full details here.

To a new way of life, and a new generation of wealth...

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Jeff