The Institute of Civil Engineers this week published its annual State of the Nation Report and its review of the energy industry caused the greatest level of concern. When reviewing security of supply, the report noted that with maximum capacity very close to peak capacity, there is an urgent need to address the lack of spare capacity. It stresses that the next five years are crucial for the government which must look at renewables, nuclear and technologies that make fossil fuels cleaner. Elsewhere, Energy Minister Charles Hendry said at a Nuclear Industry Forum that the government is examining ways to incentivise the construction of fossil and nuclear capacity with the use of 'capacity payments'. The long term plan is to introduce a minimum carbon price using a modified Climate Change Levy and it will be imposed to penalise carbon emitters. The government has yet to work out what the floor will be but it is hoped that the signal of intent will given potential developers the confidence to invest. Debate still rages though as to whether a carbon floor price can and will work.