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UK drives on with new nuclear developments

EIC Energy Markets Team - June 2011

The UK Government has confirmed the eight sites that it will allow new nuclear generation facilities to be built on. This is despite other nations pulling away from the technology, most notably Germany and Switzerland. In addition, a recent referendum in Italy has defeated Government plans to reintroduce nuclear in the country. However, the UK Government continues to underline that they will not provide direct support to the technology. Supporters of nuclear continue to highlight that the technology provides a low-carbon solution to supply problems.

The finalised Energy National Policy Statements (NPSs) have been presented to Parliament to be voted on. They indicate that Bradwell, Essex; Hartlepool; Heysham, Lancashire; Hinkley Point, Somerset; Oldbury, Gloucestershire; Sellafield, Cumbria; Sizewell, Suffolk; and Wylfa, Anglesey are all suitable for nuclear sites. It hopes to have these developed before 2025. As well as helping reduce carbon emissions, new generation is needed to fill a looming supply gap.

However, the crisis in Japan has led to many nations reassessing the use of the technology. Germany has already reversed its energy policy and intends to fast-track the closure of its nuclear plant. Switzerland is not allowing any new reactors to be built after its current fleet comes to the end of its lifespan. In the UK, nuclear is being allowed to go ahead, but under the agreement made between the Conservatives and Liberal Democrat, it will have to stand financially on its own merits without any support.

Energy Minister Charles Hendry commented, "Around a quarter of the UK's generating capacity is due to close by the end of this decade. We need to replace this with secure, low carbon, affordable energy. This will require over 100bn pounds worth of investment in electricity generation alone. This means twice as much investment in energy infrastructure in this decade as was achieved in the last decade."