Investing in the Energy Market in the UK

By Anne Lewis-Schneider

Britain has many investment opportunities available to the public in different fields of energy production from solar and wind farms to nuclear energy power plants. The price of energy is on the increase and one way to get back some of your finance is to invest in the companies that supply your power. With the nuclear plant at Hinkley in Somerset going ahead, investing in the company to build the plant, EDF in France is an option available to the investor.

There are many avenues open for investment ranging from the Big Six Energy Companies to lesser known smaller concerns that are operating wind farms and solar energy. According to an investment specialist, EDF shares are available at a good price, with trading fees reasonably low, although buying shares always means that the broker has to make his profit. There are spin-off companies who manufacture components and software for the bigger energy companies, and these are also an option, as companies cannot function without suppliers.

Many companies that are listed on the stock exchange, as well as prospective companies who are in the process of listing shares are an option for investment. With the new nuclear power plant, many sub-contracting companies will become involved in the construction and set up of the power station so it would be a good idea to invest in their shares. There are options available in nuclear waste management as well as engineering software which are constantly evolving to meet new technology.

There are not very many options available in the green energy field but these should increase as time goes by. Renewable Energy Generation is a company that has established itself and is in the process of constructing more wind farms with a considerable amount of sites in the process of planning. Solar farms and wind energy are two main sources of renewable energy that could be worthwhile investing in as the low carbon emissions make these forms of energy appealing to the EU and their targets to reduce the load of emissions from conventional coal burning energy supplies.

Energy funds are an option from large companies that have substantial holdings, to the newer and smaller companies just starting out. Investment trusts that specialise in renewable energy are becoming more readily available. It would be best to consult a broker who will be able to guide you in the right direction in the shares market.