Clouds are gathering over Britain's new nuclear dawn

The Government's plans to head off an impending energy crisis are shrouded in uncertainty, reports Mark Leftly

The politicians of Cumbria County Council have cooled on the idea of burying hundreds of thousands of tonnes of nuclear waste but a kilometre beneath their feet.

Initially tempted by the huge economic benefits a £12bn nuclear research and disposal would bring, councillors now seem dismayed that the waste wouldn't be considered safe for another 100,000 years.

On Tuesday, the council put back plans to test the suitability of potential sites until next year. This is the latest in a series of blows for a government that is worried sick of an impending energy gap: OfGem has just warned that spare energy production capacity will be gone in three years, making the UK dependent on imported gas. Ministers want to settle this energy crisis with a wave of new nuclear power stations, particularly as it is a clean power source that will help the country meet strict carbon emissions targets.

If the three consortiums that are planning to develop those stations cannot even rely on the UK to find a dumping ground for radioactive waste, then there may be no future for the new nuclear programme.

Yet, Whitehall remains fairly calm about the state of the consortiums, convinced that the first of the five sites that are due to start generating power by 2019 will broadly hit that target.

The most committed company to the nuclear programme is France's EDF Energy. What is less certain is the willingness of British Gas' parent Centrica, the only British company left within the three groups. EDF is known to have drawn up a "plan B" should Centrica pull out, which could happen when the Government finalises a nuclear market rate band later this year.

The floor of that band will determine whether there is enough money in new nuclear generation to allow it to ignore more straightforward opportunities in traditional markets, such as gas production. Critics argue that this is essentially a subsidy.

The first project due is a new, £14bn plant at Hinkley Point in Somerset, which would be the UK's first since 1995. EDF is in talks with two Chinese energy giants about selling them a stake in Hinkley, a move that would spread some of the risk of the project – particularly if Centrica does decide to pull out.

The biggest blow to new build came earlier this year when German energy groups RWE and E.on decided to ditch their Horizon consortium, which was to spend £15bn on new power stations in North Wales and Gloucestershire.

At the time, environmentalists believed this was a significant moment in their campaign to persuade the government nuclear was potentially too dangerous, and wind and solar power made far more sense. However, government nerves were soon calmed when several potential bidders appeared.

Bids were due at the end of last month and were expected from three parties. However, one of these groupings, which consisted of Guangdong and France's Areva pulled out at the last minute, fuelling reports that the process was in disarray.

However, a source close to that sale insists the consortium would have been the weakest of the three, with Guangdong far more eager to take that stake in Hinkley Point.

The two remaining ventures are led by Japanese rivals Hitachi and Toshiba, though there have been questions over the latter's financing for the bid.

NuGen is due to build on Sellafield, and is the existing developer most shrouded in mystery. Even a Government source admits he is not certain what is going on.

Last week there was a seemingly well-sourced report that Iberdrola was planning to pull-out, which the Spanish group has since denied. Whitehall mandarins are taking this denial at face value and industry insiders are, in fact, more concerned that Iberdrola's partner, GDF Suez, might eventually be the one which chooses not to proceed.

As clear as mud, then – which is why it is unsurprising such doubts remain over nuclear's new dawn.

Independent Comment
blog comments powered by Disqus
News in pictures
World news in pictures
       
 
iJobs Job Widget
iJobs Money & Business

FX Options Front Office Java / C# Developer

£500 - £600 per day: Orgtel: FX Options Front Office Java / C# Developer - Ba...

Project Manager - Front Office - Regulatory IT

£600 - £700 per day: Orgtel: Project Manager - Front Office - Regulatory IT C...

FATCA Project Manager

£600 - £750 per day: Orgtel: FATCA Project Manager - Banking - London - £600-...

Fidessa Analyst / PM - Banking - London - £600pd

£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...

Day In a Page

Babies behind bars: A Palestinian fertility doctor has become an unlikely hero by helping women conceive – even though their husbands are in jail

Babies behind bars

A Palestinian fertility doctor has become an unlikely hero by helping women conceive – even though their husbands are in jail
Sonic youth: The high-pitched sound alarm for under 25s

Sonic youth: The high-pitched sound alarm

Is Mosquito, the alarm only under-25s can hear, a blessing or a bane?
The art of living in small spaces: Architects are learning how to make less, more

The art of living in small spaces

Space in cities at a premium so architects are learning how to make less, more...
Zombie nation: Our enduring fascination with a world full of death and destruction

Zombie nation: Our fascination with death and destruction

A new season of shows on Radio 4 is inspired by dark tales of future dystopias. Meanwhile, zombies are marauding in the multiplexes...
Martin Stephen: 'Ofsted says comprehensives are failing the most able but teaching bright children isn't rocket science'

'Teaching bright children isn't rocket science'

It doesn't take a selective system to nurture the best minds, says a former head of St Paul's boys' school.
The retail empires strike back: Can new technology lure us back to the high street?

Can technology lure us back to the high street?

The high street has been bruised and battered by online firms but in-store technology is helping to enliven the retail experience...
The 10 Best new smartphones

The 10 Best new smartphones

Photos, films, music, apps and browsing - the latest mobiles can do it all
Jenson Button: Downbeat driver cannot wait to put season behind him

Jenson Button: Downbeat driver cannot wait to put season behind him

McLaren man admits 'failed gamble' with car has left him pinning hopes on 2014 campaign
James Lawton: Firmer fist will be required to win Champions Trophy final battle with stouter foe

James Lawton

Firmer fist will be required to win Champions Trophy final battle with stouter foe
'To farm I have to rape the countryside. It’s got to be wrong': The true effect of the badger cull

The true effect of the badger cull

'To farm I have to rape the countryside. It’s got to be wrong'
Theatre review: Daniel Radcliffe gives an admirably honest performance in Michael Grandage's The Cripple of Inishmaan

First night: The Cripple of Inishmaan

Daniel Radcliffe gives an admirably honest performance in Michael Grandage's comedy
Girls Guides drop religious reference but pledge to self and the Queen

Guides drop religious reference but pledge to self and the Queen

After 103 years, organisation changes oath to welcome 'all girls, of all faiths, and none'
Steve Tongue: Joe Kinnear was one of the boys and a breath of fresh air... 21 years ago

Steve Tongue

Joe Kinnear was one of the boys and a breath of fresh air... 21 years ago
Chris Froome: Free from 'pain in neck' after Bradley Wiggins' exit

Chris Froome: Free from 'pain in neck' after Wiggins' exit

Sky's lead rider says he is in fantastic form for the Tour and happy pecking order debate is over
Hannah England: I've got the right times – now to focus on the chess

Hannah England: Keeping Track

I've got the right times – now to focus on the chess