23 May 2012

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9 July 2010

Understanding the UK's agenda for promoting investment in new nuclear power

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Understanding the UK's agenda for promoting investment in new nuclear power

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Nuclear power is enjoying a revival of interest in the UK as the government looks to avert a looming energy crisis by developing low carbon fuel sources to meet the country's future energy needs.

However, the future of new nuclear power development in the UK remains uncertain. And no developer has as yet made a final investment decision to press ahead with a new nuclear power project in the UK. 

Current estimates suggest that around a third of the UK's generating capacity may need to be replaced by 2015.

Issues such as security of supply, carbon reduction commitments and managing the impact of pricing on consumers are factors that have helped to push nuclear power into the planning of the country's future energy mix.

The UK's coalition government has given its backing to the development of the new nuclear power programme but it has ruled out any taxpayer subsidy to support it.

The UK first indicated its renewed interest in developing new nuclear power plant to address the energy gap in a Nuclear White Paper that was published in 2008.  It followed up the white paper with a programme of facilitative actions to address potential regulatory and legislative barriers to investment in new nuclear.

The new coalition government has also confirmed that it will look to create a level playing field between nuclear power and other low carbon energy sourced by introducing a carbon floor price. This policy has provoked criticism in some quarters over the impact it may have on the competitiveness of UK industry as well as how it may potentially affect the European Union's Emission Trading Scheme.

The UK's ambitions to develop a new nuclear power programme to address a future energy gap may depend on how successful the government is in ensuring that new nuclear is allowed to compete on a level playing field with other forms of low carbon energy.

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