This is a huge target moving the previous unreachable target of 20% to 34% perhaps a pre-cursor to including nuclear in the calculations for the future. The chancellor though was also in a benevolent mood to the energy industry freeing up £525m for off-shore wind farms and exempting CHP from CCL in 2013. Most of these targets and aspirations are set to take place after 2010, and so of course the market needs to price in a change of government and whether they will renege on these pledges. I have no doubt that the 34% target is a political one designed to re-position the labour government in opposition as the greener of the two parties.