This quarter we highlight our deteriorating outlook for the US nuclear sector as a key theme,with high technology costs, competition from alternative sources of power and weak power demand hittingthe sector. In Turkey, natural gas has also taken a hit, as power mix diversification efforts have picked upsteam as the government aims to curb the reliance on imported gas feedstock. Finally, renewable energy ispicking up in Spain after years of stagnation following two large-scale capacity auctions held in 2017, butwe maintain a cautious long-term outlook due to limited visibility into plans for future auctions.
We have downgraded our nuclear power capacity and generation growth outlook in the United Statesthis quarter - following the cancellation of the Summer 2 and 3 nuclear reactors and the continueduncertainty over the continued constriction of the Vogtle 3 and 4 reactors. This downward revision is inline with our long-held view that the sector would be put under increasing pressure due to high costs,weak growth in US power demand and a growing supply from cheaper natural gas and non-hydropowerrenewable energy.