Government help for nuclear industry

With all but one of the UK’s 16 nuclear reactors to be de-commissioned by 2023, the Government will assist 35 research projects in nuclear technology, with funding of £18m, and at the same time create a “world-class” central resource of £15m to help UK companies “compete” more effectively in the nuclear energy sector and potentially create an additional 30,000 jobs.

These projects will cover building, waste management, decommissioning, maintenance, and operations. This strategy will be under the auspice of a Nuclear Industry Council that will be co-chaired by industry leaders and Government ministers.

Commenting on this, Business Secretary Vince Cable, said: “Nuclear power has the potential to play an increasing role in meeting the UK’s future energy needs. It is a source of low-carbon energy and can contribute to the UK’s energy mix and security of supply longer-term.”
It is estimated that over the next 20 years the building of new reactors globally will entail investment of £930bn and that over £250bn will be spent de-commissioning the older generation of reactors.

The Government’s 2011 plans to build new reactors at Hinkley Point, Oldbury, Sellafield, Sizewell, Hartlepool, Bradwell, and Wylfa, have run into problems, due to complex design delays and escalating costs. Dr Cable added: “This strategy – like those for offshore wind and oil and gas – will receive a more effective alignment and integration of energy and industrial policy to enable the UK to deliver competitive energy technologies in future, with significant input from UK-based industry.

“Part of industrial strategy is about supporting successful sectors. Today’s nuclear strategy is one of several sector strategies we will be developing between now and the summer in partnership with industry. And this is one of three that focuses on energy industries: the others being offshore wind and oil and gas.”

Any future development of new nuclear reactors will be reliant on Government guarantees of the price obtainable by the owner for electricity thus generated.

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