UK Nuclear Policy

Andrew Beirne

Current Nuclear Generation and Planned to 2030

• Current nuclear capacity in the UK is 9.23GW – 19% of UK generation. This is expected to decline substantially as plants ‘end of life’ approaches in mid-2020’s.

• 8 new nuclear designated sites name. Firm development plans 5 sites - Hinkley, Sizewell, Wylfa, Oldbury and Moorside, which should generate 16GW or more.

• Hinkley Point C currently most advanced

• UK legally committed to cut emissions to 80% below 1990 level by 2050

• Nuclear provides baseload low carbon energy and reduces vulnerability to fossil fuel market volatility, so improving energy security.

• Prime Minister Gordon Brown in 2008 White Paper – Meeting the Energy Challenge:

‘we need to take determined long-term action to reduce carbon emissions in every aspect of the way we live… Nuclear power is a tried and tested technology. It has provided the UK with secure supplies of safe, low-carbon electricity for half a century.’

• 2011 National Policy Statement for Nuclear Power Generation identified 8 sites for new plants.

The Case for New Nuclear in the UK

DECC’s Public Attitudes Tracker, Wave 9 March 2014• 42% of UK adults supported nuclear energy in March 2014 - sig

increase v. Sept 2012 (38%). Opposition fell significantly - 27% to 20%. • A third of people (34%) took a neutral stance in both March 2014 and

September 2012.

Public supportIncrease in support for nuclear

Public support – comparison to other energy sources

Developers with New Nuclear Plans UK

Subsidiary NNB GenCo intends to build four new EPR reactors (amounting to 6.4GW) at Hinkley Point and Sizewell. Currently under negotiation for CFD.

GDF and Westinghouse/Toshiba plan to build up to 3.6GW of new nuclear capacity at Moorside near Sellafield.

A wholly owned subsidiary of Hitachi Ltd. Plans to develop up to 7.8GW of new nuclear capacity at sites in Wylfa and Oldbury.

• Electricity Market Reform to deliver the low carbon energy and reliable supplies that the UK needs, while minimising costs to consumers.

Introduced Contracts for Difference (CFD): provide long-term price stabilisation for low carbon generation, allowing investment at a lower cost of capital and therefore a lower cost to consumers.

• The duration of the payments lifetime of the plant - 35 years in case of Hinkley Point C.

• Terms agreed in principle.

New Nuclear – Funding Mechanisms

• Geological disposal to manager higher activity waste long term. One facility planned to dispose of legacy and future spent fuel and intermediate level waste.

• Safe and secure interim storage – generally on the power station site.

• Operators of any new nuclear power stations must have a Funded Decommissioning Programme approved by Secretary of State before construction begins. The objective of the FDP regime is to ensure that the risk of recourse to public funds is remote.

Waste management

• Oxford Economics – gross direct/indirect economic benefits of a 10GW programme £36bn (€50bn)

• Key benefits:

– Low carbon energy and increased price stability – Hinkley Point C to produce enough power for 6 million homes

– Employment – Development of nuclear skills– Supply chain opportunities for UK companies– Infrastructure development – wider economic benefits

Economic Benefits

Skills and Employment

Nuclear workforce forecast to rise by 28,000 to 2021

Wider benefits

- Employment in otherwise deprived areas

- Development of new generation of nuclear engineers

- Creation of more world class nuclear training facilities

- Develop exportable skills capability

Skills

• More than 260 UK companies part of Nuclear Industry Association

• Capabilities throughout the nuclear lifecycle– Support to owners– Plant and equipment supply– Civil engineering and construction– Plant and equipment installation and commissioning– Decommissioning– Fuel fabrication

• UK suppliers will play a major role in all nuclear plants. EDF has said it expects at least 57% of the content for Hinkley Point C to come from the UK

Supply Chain

THANK YOU

QUESTIONS?