NEW NUCLEAR UK | POLICY & FINANCE


Above: The new government says nuclear “will play an important role in helping the UK achieve energy security and clean power while securing thousands of good, skilled jobs”


supporting Great British Nuclear’s delivery plans, as well as a wider ecosystem of government support around new reactor designs and other technology development. Other actions may be unhelpful to new nuclear. Labour will maintain a strategic reserve of gas power stations to guarantee security of supply, which may mean lower peak prices at times of scarcity. Those higher prices can benefit existing nuclear plants that generate in all weathers (although new plants typically will have contracts that cap the price that can be realised, instead offering guaranteed prices). A new Energy Independence Act will establish the framework for the new government’s energy and climate policies, but new legislation – coming so soon after the 2023 Energy Act – opens the possibility of delay. The new administration also proposes more changes in the country’s energy markets and charging regimes, including an option to remove daily ‘standing charges’ from consumer bills – which cover regulated investment, potentially including Sizewell C – and that will absorb a lot of industry attention and introduce a risk for investors.


The think tank view Does the new government’s package meet the UK nuclear industry’s needs? Those needs were set out in a White Paper on ‘Nuclear: Challenges and opportunities’, authored by the Energy Futures Lab at Imperial College and published shortly before the election. The authors start with the assumption that, “A range


of technologies will be needed to achieve net-zero. These include not only renewable generation-based technologies, but also nuclear power, as well as fossil fuel generation with carbon capture and storage (CCS).” They discuss the prospect of new nuclear representing a “significant proportion of UK power generation”, raising


five issues: ● Securing the right workforce and skill sets ● The role of international collaboration in sharing technology, expertise and costs


● The economic implications of new nuclear power projects


● Realistic timelines for deployment ● How to manage the high upfront capital costs of nuclear projects


They said that the gap between the UK’s planned and proposed capacities and the nuclear target of 24 GWe by 2050 “emphasises the financial and strategic challenges ahead”. It necessitates substantial investment, with potential implications for public finances, private sector involvement, and policy frameworks. The report recommends several actions to be jointly


pursued by government and the industry: ● Diversify funding sources, including government


investment, private sector participation, and innovative financing mechanisms to mitigate economic risks


● Develop education and training initiatives, in collaboration with academic institutions and industry partners, covering the entire nuclear lifecycle


● Promote strategic international collaborations with countries that possess complementary nuclear expertise, to share knowledge, reduce costs, and enhance security in areas such as reactor design, fuel supply, waste management, and regulatory frameworks


● Engage the public in open and transparent dialogues about nuclear power’s role in the UK’s energy future


● Allocate substantive resource for research and development in advanced reactor technologies, safety improvements and waste reduction


● Consider safety and decommissioning and collaborate internationally with initiatives such as the International Atomic Energy Agency


Overall, the report recommends “a clear and cohesive long-term strategy for nuclear power that aligns with national energy and environmental goals, providing stability for investors and industry stakeholders”. Coincidentally, that has been an aim of the nuclear industry and successive governments for decades: it remains to be seen whether the UK’s new government can deliver it. ■


www.neimagazine.com | August 2024 | 33


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