UK to put nuclear power at heart of net zero emissions strategy
Good to hear. Britain managed to pull some common sense out of its ass for a change.
UK ministers will put nuclear power at the heart of Britain’s strategy to reach net zero carbon emissions by 2050 in government documents expected as early as next week, alongside fresh details of its funding model. Kwasi Kwarteng, business secretary, is to unveil an overarching “Net Zero Strategy” paper as soon as Monday, along with a “Heat and Building Strategy” and a Treasury assessment of the cost of reaching the 2050 goal. The main strategy will have a heavy focus on Britain’s slow-moving and long-awaited nuclear power programme.
The country’s existing reactors are due to be retired by 2035, with construction on just one large plant, Hinkley Point C, already under way. Prime Minister Boris Johnson was expected to give the go-ahead to the strategy documents at a cabinet “away day” in the West Country on Friday. The creation of a “regulated asset base” (RAB) model will be key to delivering a future fleet of large atomic power stations. The RAB funding model is already used for other infrastructure projects, such as London’s Thames Tideway super sewer. Under the scheme, households will be charged for the cost of the plant via an energy levy long before it begins generating electricity, which could take a decade or more from when the final investment decision is taken. The mechanism is designed to encourage investment by institutional investors, such as pension funds, by guaranteeing steady returns from early on.
Legislation on the nuclear RAB model will be published later this month. However, opponents of the model argue that consumers could be hit with cost of construction overrunning. French utility EDF plans to use an RAB model to finance a new 3.2 gigawatt plant at Sizewell in Suffolk, South East England. In north Wales, US nuclear company Westinghouse is planning to revive plans for a nuclear power plant at Wylfa that was abandoned by Japan’s Hitachi in 2019. Ministers are also backing smaller modular reactors (SMRs) which are being developed by a consortium led by Rolls-Royce. Supporters of SMRs say these could be built in factories and have lower costs and risks than large atomic plants. SMRs were also a key part of French president Emmanuel Macron’s €30bn investment plan announced earlier this week to boost his country’s green and high-tech industries.
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