Will government nuclear deal boost alternative energy?

ON ENERGY

The government's unveiling of plans for a new nuclear power plant has moved alternative energy to the top of the political agenda. There are a range of forces supporting the case for investing in wind and solar power too, says energy fund manager Ed Guinness.

After a challenging period since 2008, many companies in the alternative energy sector were trading at prices that implied they would fail. Most have now seen recoveries in their fortunes, particularly in the wind and solar markets, as the sector has bounced sharply this year. With its strong recent performance, we are pleased that specialist companies are demonstrating the higher performance we would expect. We have some concerns that stock prices, after the run up, now more accurately reflect the levels of risk that the sector faces. However, much of the return has come from stocks rec...