Green energy: the nuclear debate

THE foundations are in place for the North West to be at the forefront of next-generation nuclear build, but uncertainty in the market place – and over funding means there is no clarity when this will occur.

This is according to an expert panel debating on future energy supply in the North West in association with law firm DLA Piper.

Citing the excellent academic links, sheer number of nuclear businesses active in the region – such as Westinghouse, AMEC and Urenco –  and the major nuclear decommissioning and generation operations in Lancashire and Cumbria, DLA Piper partner Darren Walsh says: “The North West’s heritage is critical to nuclear’s renaissance.”

Confidence in the safety of nuclear power took a knock in the aftermath of the Fukushima disaster in Japan last year, but the consensus view is that it has not been damaged public opinion to the point that new nuclear is an unpalatable concept.

Kevin Hesketh, senior research fellow at the Preston-based  National Nuclear Laboratory, a government-owned body said: “I thought Fukushima would seriously damage prospects for new nuclear but I was very pleased that the UK and other countries’ reaction was very pragmatic and muted – and the overall outcome was not as bad as we feared it would be.”

Darren Walsh, pictured, added: “Perhaps five or 10 years ago the majority of public darren walshperception was not in favour of nuclear but the reality is that people want certainty and security of supply. I think the public do understand it (nuclear) provides that base load and security of supply.”

Currently nuclear provides around 18% of the UK’s power, though this will reduce as the current crop of nuclear power stations reach the end of their life-spans.

New nuclear power stations will eventually fill the gap, but there are significant questions over when this will be.

One major nuclear project, Horizon Nuclear Power, which was formed in January 2009 with the aim of developing up to 6,600 MW of new nuclear power station capacity- has been put up for sale by its shareholders E.ON UK and RWE npower after deciding they do not want to be part of the UK nuclear sector moving forward.

Horizon plans to build new power stations at Wylfa, on Anglesey and at Oldbury-on-Severn, Gloucestershire.

Rumours abound that Chinese energy firms may buy the two German-owned groups’ shares, meaning that Horizon will progress.

Darren Walsh of DLA Piper says: “The chief executives of RWE and E.ON explained the reasons for that (their withdrawal) and it seems more about political decisions regarding what’s happening for German energy. Nuclear as a prospect is certainly bright.”

Uncertainty over future government policy in not helping woo international investors.

Paul Hamer, chief executive of WYG, the environmental, technical and
management consultancy, said:“The North West historically has a core of talent for nuclear decommissioning and new build. You would hope it will be part of the energy mix in future but because it is nuclear, and because of the investment needed, it tends to be driven by politics, rather than
economics.”
 
To download our Green Energy supplement in association with law firm DLA Piper, please click here .

Click here to sign up to receive our new South West business news...
Close