-
The UK government has made several commitments towards nuclear energy development in the coming decades as it seeks to cut carbon emissions by 230 million metric tonnes.
- The government will provide GBP385 million in an Advanced Nuclear Fund for nuclear energy innovation as the UK looks to be the world leader in nuclear energy development by 2040
- The government also has lofty goals of achieving commercial nuclear fusion power generation by the 2040s
The UK Government in its recently released White Paper ‘Powering our Net Zero Future’ which outlines a Ten Point Plan for a Green Industrial Revolution. The document outlines steps that the government intends to take over the next ten years to reduce industry, transport, and buildings emissions by 230 million metric tonnes while creating hundreds of thousands of new green jobs.
The White Paper states that any low-cost, net-zero consistent system would likely to be composed predominantly of wind and solar. But to ensure system reliability, intermittent renewables would have to be complemented by technologies which provide power or reduce demand. For now, it envisages that nuclear, gas with carbon capture and storage, energy storage and other adjustable and flexible options would perform this function.
Currently, nuclear power provides around 16 per cent of the UK’s electricity supply, but existing reactors are scheduled to reach the end of their lifecycles by 2030. In 2016, the government agreed contracts for the first new nuclear power plant in a generation – Hinkley Point C – which will provide 7% of the country’s current electricity needs. The White Paper seems to show that in addition to wind and solar, nuclear is also being considered by the government as vital to achieving the UK’s emissions target.
In the White Paper, the government states that it will remain open to further projects later if the nuclear industry demonstrates that it can reduce costs and deliver to time and budget. The expectation is that the sector will deliver the goal set out – reduce the cost of nuclear new build by 30% by 2030 – in the 2018 Nuclear Sector Deal.
In terms of finance, the White Paper also provides an avenue for new nuclear financing as the government will examine and consider financing options provided there is clear value for money for consumers and taxpayers.
The government has also stated it will provide up to GBP385 million in an Advanced Nuclear Fund. GBP215 million of which will be invested in the development of a domestic small modular reactor (SMR) design. The remaining GBP170 million will finance a research and development programme for advanced modular reactors (AMR).
The government also has plans of building an economically viable nuclear fusion power plant by 2040 and has pledged over GBP400 million towards new UK fusion programmes.