New Nukes
Experts are warning that Governmemnt plans to put a floor under the carbon price may not be as straightforward as they seem. Many of the policies follow broadly the same trajectory as those of the out-going Labour government. But one clear break with the past is the commitment to set a floor price below which the cost of carbon emission permits cannot fall. Alongside sighs of relief that Liberal Democrats’ opposition to new nuclear power stations will not dominate the new government’s policies, the measure on the carbon price floor was explicitly welcomed across the energy industry, particularly by companies aiming to take part in Britain’s “nuclear renaissance”. EDF warned last year that unless the finances for such massive capital investment can be made to work, its plans for four new nuclear reactors will not go ahead. Would-be nuclear builders, faced with a weak current carbon price and little regulation beyond the end of the EU ETS phase three, in 2020, may have trouble building a viable business case for such a vast, long term investment. A floor under the carbon price could solve the problem. Vincent de Rivaz, the chief executive of EDF Energy, said: “The commitment is an important part of the future investment framework to encourage low carbon generation.” But behind the positive noises, experts acknowledge that “the devil will be in the detail”. Richard Gledhill, at PricewaterhouseCoopers, said: “Until we know how the Government is planning to do this and what the floor level will be, we just do not know how significant it is.” The biggest question will be affordability. If the floor price is set sufficiently high to act as a real incentive to develop new nuclear, it could quickly become unaffordable for the Government. But there are also issues about the unintended consequences. The measure runs the risk of undermining the whole EU ETS market, for example. It may also produce windfall profits elsewhere.
Independent 17th May 2010 more >>
Energy Secretary Chris Huhne has strengthened his assertion that new nuclear build will not receive any Government subsidies including in the event of a nuclear accident. The cost of full insurance may well be prohibitive to developers planning nukes at Oldbury. Indeed in Somerset the anticipated date for the Hinkley C planning application to the Infrastructure Planning Commission has just slipped by four months from 2nd August to 1st December (no reason given!). This is the second delay in the application which was originally expected at the beginning of July. Huhne may also be under pressure from anti-nuclear Lib-Dem colleagues to examine other potential aspects of Government subsidy such as the Labour proposal for fixed pricing of nuclear waste management after the expected 60 year life of the reactors. This ridiculous pricing model would give assurance to the industry over future costs of nuclear waste disposal but could be at the expense of tax-payers.
Ruscombe Green 16th May 2010 more >>
Letter from Malcom Wicks: Energy policy presents a unique challenge for the coalition and it occurs at a critical time. Parliament has legislated for very substantial cuts to carbon emissions; there are security risks involved in growing import dependency; and companies require a stable strategy if large-scale investments are to be made. The Conservative party has seemed reluctant in practice to support on-shore wind farm developments. Yet the coalition agreement seeks “to increase the target for energy from renewable sources”. This goal comes at a time when the current target – 15 per cent of all energy by 2020 – is already a most demanding one. For their part the Liberal Democrats oppose nuclear power and the agreement allows them to maintain their opposition. Yet the new energy secretary, Chris Huhne, is a Lib Dem. He will discover that he cannot afford to be a passiv e observer. Past secretaries of state played a strong role in facilitating the development of nuclear policy, in terms of generic assessment, siting, skills, formulae for ensuring that companies pay for nuclear waste and the long-term challenge posed by deep geological disposal.
FT 17th May 2010 more >>
Hinkley
The anticipated date for the Hinkley C planning application to the Infrastructure Planning Commission has slipped by four months from 2nd August to 1st December. This is the second delay in the application which was originally expected at the beginning of July.
Shepperdine Against Nuclear Energy 16th May 2010 more >>
The anticipated date for the Hinkley C planning application to the Infrastructure Planning Commission has slipped by four months from 2nd August to 1st December. This is the second delay in the application which was originally expected at the beginning of July.
Bristol Indymedia 16th May 2010 more >>
Wylfa
Commercial reality being what it is, there must now be a question mark over whether Horizon Nuclear Power, the consortium poised to seek planning permission for Wylfa B, will be prepared to hang around long enough to see the go-ahead given – and that is assuming the Conservative-Lib Dem government have enough enthusiasm to want it in the first place. Suddenly, the high hopes we all had for a jobs bonanza on Anglesey, not just at the power station but in countless other related industries, seem on the cusp of being dashed.
Daily Post 14th May 2010 more >>
Decommissioning
THE government last night accused Labour of pursuing a “scorched earth policy” before the general election, leaving behind billions of pounds of previously hidden spending commitments. This includes the multibillion-pound cost of decommissioning old nuclear power plants, which ministers claim has not been properly accounted for in Whitehall budgets.
Sunday Times 16th May 2010 more >>
NPT
We are half-way through the negotiating marathon that is the Nuclear NPT review conference and the crunch is approaching. The speeches have been made, the working groups set up, and drafts assembled. There are now two weeks left for the tough bargaining between the nuclear haves and have-nots over what the global arms control regime should look like.
Guardian blog 16th May 2010 more >>
Iran
Iran has agreed a deal to send uranium abroad for enrichment after mediation talks with Turkish and Brazilian leaders, officials in Tehran say. Iran’s foreign ministry said it was ready to ship 1,200kg of low-enriched uranium to Turkey, in return for nuclear fuel for a research reactor.
BBC 17th May 2010 more >>
Telegraph 17th May 2010 more >>
Vanunu
Letter from Tony Benn and others: On 11 May the nuclear whistleblower Mordechai Vanunu was sentenced to a further three months in prison, to start on 23 May. This latest sentence follows his objection to doing community service in West Jerusalem, where he reasonably feared for his safety. He was quite prepared to work in East Jerusalem, but this compromise was denied him by the supreme court. This most recent court hearing arose because Vanunu had been charged with breaking the draconian restrictions imposed on him ever since his release, in 2004, from his 18-year prison sentence – 11 of which were spent in solitary confinement.
Guardian 17th May 2010 more >>
