Nuclear Power Investment to turn on GREEN LIGHTS

As governments across the world are imposing strict laws to cut down on carbon emissions and force through green policy measures, energy firms such as Centrica are looking to boost their investment in nuclear power, which is carbon-free. British Gas owner Centrica has clinched a deal valued at about £2.25bn to buy a 20% stake in nuclear company ¬British Energy. The industry has received support from the British government. This move by British and other west European governments is mainly to reduce the country's dependence on foreign gas from Russia.

Centrica has been under pressure from shareholders to invest more in power generation, as it can only meet a third of demand from its own resources. By investing in British Energy, Centrica can lessen its dependence on the wholesale gas and electricity markets where prices are volatile, making it difficult to predict future profits, something that unsettles investors.