The Japanese Nuclear Crisis and Renewable Energies

by: Dr Christophe Aubin Nury De Malicorne

Dr. Christophe AUBIN-NURY de Malicorne is Director, International Board for Asset Management at SCMS/HATHOR (SPC) Ltd; Lecturer of Economics-Finance and Member of CEDIN Research Center at University of Paris 10. Here is an extract from a March 21, 2011, interview with Euro am Sonntag

Q: What are your expectations regarding the development of renewable energies due to the decreasing acceptance of nuclear energy?

A: In my view, the 2011 Japanese nuclear crisis is a critical turning point in the energy sector as nuclear power plants are clearly too risky for the general population. Therefore, government funding will be for now on definitely oriented away from nuclear sources and more towards renewable energies..which are available worldwide for free!

Q: Is the current debate on nuclear power and the demand on modern energy models to understand as a calming on the population? Or you expect a significant shift in energy policy?

A: For Governments around the globe, the risk to continue to develop nuclear plants is socially and of course morally unbearable and could not be accepted by the general population, in light of the Japanese nuclear crisis.

Already there are numerous calls by consumer advocates to hold governments accountable for any potential additional nuclear crisis in other countries, such as France for example.

In my opinion, to calm the anxiety of populations and to take concrete as well as lasting protecting measures, the shift in energy policies is inevitable and must happen immediately and rapidly through possibly a United Nations resolution because every country’s nuclear plant is a risk for the whole planet.

Q: What is the impact specifically for the wind energy sector (from the perspective of the investor at HATHOR?

A: At HATHOR (SPC) Ltd., Capital Management Group we believe that the sector of Wind Energy is of course largely benefitting from the nuclear crisis in Japan and to be specific, the Index of Wind Energy related stocks is up about 10% since the beginning of the crisis. As a Portfolio Manager, I notice a growing interest in our Portfolio 2: HATHOR Green Energy as investors realize that the rise of Wind Energy will be even faster than forecasted with the inevitable forthcoming government measures.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.