The announcement during Chinese President Xi Jinping's recent UK visit that China General Nuclear Power Corporation (CGN) will invest in the new Hinkley Point C nuclear power plant confirmed the UK government's commitment to nuclear. It looks likely to secure the technology's UK future. However, with nuclear accounting for less than 20% of UK electricity supply and under 10% of total energy demand, questions remain about meeting the rest of the country's energy needs, including through renewables.
UK energy demand has stagnated recently, seeming to 'decouple' from economic trends: any energy-use rise looks set to lag overall growth.
Despite a less supportive policy environment, renewables' share in the energy mix could keep rising if the cost-decline trend continues.
However, the government could follow other countries in imposing further charges on existing renewables suppliers to contain growth.
Local opposition to shale projects could become politically awkward for the government in some areas.
