So Eco Bling Adds To the Value Of Your House

DECC has recently released research suggesting that energy efficiency measures can add to house sales values. The report suggests that, on average, moving up 2 bands on the EPC scale could add £14k to a dwelling's value. There are probably plenty of properties that could see that improvement for an outlay of less than £14k so, if the research is valid, this does provide an additional arrow in the retrofit trades collective quiver. Interestingly, the regional breakdown does not give any figures for the south east (where I live so appealing to my selfish side) - there's a footnote saying the results were not statistically significant. I haven't read the full report to understand what's going on here - perhaps the high average price of properties pushed any energy efficiency factor into the noise?

Centrica Boost to Fracking

Centrica has bought a 25% stake in the Bowland Shale exploration licence. What does this mean? Is it signalling that shale gas and fracking are truly on the map now for the UK, or is it just Centrica hedging bets? Afterall, the £40m it has paid to Cuadrilla and the £60m it is putting into exploration and apraisal hardly rates as a hill of beans for the energy giant. A bit of bet hedging is my assessment at the moment. Fracking may come but it is not yet (nor is it likely to be in my opinion) the game changer that many are suggesting.

Energy Costs and Competitiveness - A Cleft Stick

Ten days or so ago IGas released studies suggesting that shale gas resources in Great Britain are considerably higher than previously thought. I understand that the report said nothing about commercial development but there is clearly the potential for extraction of indigenous shale gas, possibly at advantagous cost.

This really points up the conundrum facing the government in its ongoing development of energy policy. The UK has some of the highest energy costs in the world, and since energy is the start of many a value chain this has a direct impact on the competitiveness of UK industry. But HMG is pursuing a low carbon energy route map (although recent decision might make you doubt that). It's difficult to see how the current crop of low carbon sources - wind, nuclear, solar, even CCS - will bring costs down.

Crunch time may come soon - could we be nearing the time when HMG pulls back from its domestic climate change goals in favour of ensuring that developing nations minimise their CO2 emissions?

New Nuclear - Nearly There?

Word on the street is that Cameron's meeting with Hollande a couple of weeks ago stitched up a couple of  "scratch my back and I'll scratch yours" deals and that a notable beneficiary of the new friendliness between the big boys is EDF - or more specifically EDF's nuclear ambitions in the UK.

There's still the issue of financing the project to be overcome - EDF has a rather rocky balance sheet but it looks a though some risk sharing with construction partners might just smooth away that issue.

And then, of course, there's the strike price to settle on. Both sides are in an "interesting" place on this one. HMG must be seen to be being tough in its negotiations. EDF desparately wants the project. Look for last minute concessions on the strike price here.

Watch this space.