New Nuclear Power

Andrea Leadsom Excerpts

Wednesday 17th June 2015 Westminster Hall

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

It is a great pleasure to serve under your chairmanship, Mr Bone. I congratulate the hon. Member for Newport West (Paul Flynn) on securing the debate. New nuclear is an important topic, and Members’ challenges and questions are very much welcomed. I would particularly like to assure the hon. Gentleman that my fellow Ministers and I listen carefully to civil servants’ views. There is no sense in which they are not allowed to give their opinions, and they very much do so. I hope that reassures him. I note his interest, as demonstrated by his recent parliamentary questions on Hinkley Point C, the geological disposal facility, and safety and security at licensed sites. I hope to reassure him further on those topics, but I will first set the scene for the benefits of a new nuclear programme.

Nuclear energy plays a critical role in the Government’s security of supply and decarbonisation goals. The UK’s nine existing nuclear power plants generate around 20% of our electricity. However, all but one of them are currently expected to retire by 2030. Nuclear power is one of the cheaper forms of low-carbon electricity, reducing pressures on consumer electricity bills, relative to an energy mix without nuclear. Nuclear power provides reliable base-load electricity with lifecycle carbon dioxide emissions similar to those from wind power and much less than those from fossil fuels. New nuclear power is a vital part of the investment needed in our electricity sector that will boost the economy, create thousands of jobs and help to keep the lights on.

As set out in the Conservative party’s manifesto, we are committed to a significant expansion in new nuclear in the UK. The Government have prepared the ground for new nuclear power stations through a package of reforms and regulatory measures that will remove barriers to investment and give developers the confidence to take forward projects that will help to deliver secure, low-carbon and affordable energy. We have also ensured that operators of new nuclear power stations put in place robust plans for the finance and management of their waste and decommissioning from the outset.

We are seeing significant progress. The first new nuclear power station in a generation moved a step closer last year, as the European Commission announced on 8 October 2014 that it has approved the Hinkley Point C state aid case. The Government and EDF are currently in discussions to finalise the contract for Hinkley, which is expected to start generating electricity from 2023. In total, industry has set out plans for five new nuclear projects in the UK for a total of up to 16 GW of new nuclear capacity, providing around 35% of electricity generation.

[Paul Flynn]

I would have been grateful if the hon. Lady had left behind her civil service brief, which is the conventional one we know, with much repeated claims. Is it true that the Chinese company is threatening to withdraw its investment unless it has a stake in building Sizewell, Bradwell and Wylfa Newydd? That would mean that the new jobs in nuclear were jobs in China and France, not here, because what it is offering to provide is almost a ready-made nuclear power station, made by Chinese people with Chinese money. We are using investment to create jobs not in this country, but elsewhere.

[Andrea Leadsom]

I can assure the hon. Gentleman that each project is taken on its merits. Britain is open for business. We are very keen to see investment from overseas in our new nuclear, but it is very clear that the UK supply chain will provide an enormous amount of the jobs and growth that we are looking for in this country.

[Paul Flynn]

Will the hon. Lady give way?

[Andrea Leadsom]

I will not give way. I want to go on to answer the hon. Gentleman’s other questions and I will not get the chance to do that if this becomes a debate between the two of us—a conversation between the two of us.

In total, industry has set out plans for five new nuclear projects. The Government are clear that the UK is open for business. We want to see high-quality investment from overseas. The nuclear programme represents a tremendous opportunity to establish the UK as a key nuclear country, with the potential to export capabilities to other countries. That includes capabilities in decommissioning, in which we are already a world leader. This offers us an opportunity to develop our domestic supply chain and to realise economies of scale. It is also an opportunity to make the UK an even more attractive partner for international research and development collaboration.

[Paul Flynn]

This is utter nonsense. The person decommissioning at Sellafield is an American company. We do not have any expertise. Will the Minister give us some idea, looking at the historical cost, of what the cost of cleaning up Sellafield will be? It is already admitted to be £53 billion; it is uninsurable, so the taxpayer has to take the risk; and it will probably cost more than £100 billion, which wrecks her argument that nuclear power has ever been good value.

[Andrea Leadsom]

The hon. Gentleman is exactly right to point out that there is an enormous nuclear legacy, which this Government have been committed to sorting out, unlike previous Governments, such as the one that he was part of. The nuclear provision currently stands at £70 billion discounted and £110 billion undiscounted. That is the Nuclear Decommissioning Authority’s best estimate of the total lifetime costs of the decommissioning mission across the whole estate. Nobody welcomes that cost. Nevertheless, this Government have been determined to get to grips with it and to ensure that the material can be safely, carefully, thoroughly and properly disposed of.

To deliver the ambitious new build programme on time and on budget, a skilled workforce in the UK is essential. The scale of the industry’s new build aspirations, the length of time since the last new build project and the high average age of the existing nuclear workforce mean that it is essential to take action now to prevent skills gaps from developing in the course of the new nuclear programme. The Government recognise that this is a big challenge, particularly with the ongoing need to maintain and decommission existing nuclear power stations, so we have introduced the National College for Nuclear, which will work collaboratively with the wider industry, skills bodies and training providers, and will utilise international best practice to develop an industry-wide curriculum.

Moving on to the vital issues of safety and security, we are confident that the UK has one of the most robust regulatory regimes in the world. As the global expansion in nuclear continues, the UK will ensure that any technology used in this country meets the rigorous safety, security and environmental standards. The importance that we attach to safety is shown through the UK’s independent nuclear regulators—the Office for Nuclear Regulation and the Environment Agency—which ensure, through regular reviews and inspections, that operators are fulfilling their duties and that robust safety and security measures are in place right across the industry.

With plans for 16 GW of new nuclear capacity in the UK, the Government are firmly committed to delivering geological disposal as the safest and most secure means of managing our higher-activity waste in the long term. We need a permanent solution following more than 60 years of producing radioactive waste from various sources, including electricity generation from nuclear power.

[Paul Flynn]

The hon. Lady has been very generous to me. I think that she is probably too young to remember the Flowers report in 1968, which said that the nuclear industry in Britain was being irresponsible, because it did not have an answer on waste disposal, and it should not continue. That was 1968. The solution then was to dig a hole and put the nuclear waste in it. In 2015, the British answer is to dig a hole and put the waste in it. There has been no progress on disposal of waste, except at enormous cost.

[Andrea Leadsom]

Let me very gently say to the hon. Gentleman that ever since I was a very small child, nuclear has been an enormous personal priority for me. In fact, it was the reason why I went into politics—I did so because of the threat of a nuclear world war—so I am slightly offended by his presumption that I do not know what I am talking about. I can assure him that a geological disposal facility is not as simple as digging a hole in the ground and stuffing a load of radioactive waste in it.

[Paul Flynn]

What is it, then?

[Andrea Leadsom]

As the hon. Gentleman will know, a geological disposal facility is internationally recognised as the safest and most secure means of permanently managing our higher-activity waste, and countries such as Sweden, Finland, Canada and the USA are also pursuing that route.

I would like to get on to answering the hon. Gentleman’s specific questions. He talked about delays at other sites where there are EPR reactors. I can tell him that officials have visited Olkiluoto to get first-hand experience of the build programme there, as well as the other EPR builds at Flamanville in France and Taishan in China. Experience gained through the EPR family—it is a new technology, as he points out—is now being systematically shared between the three current build sites, and Hinkley Point will become part of that arrangement. Experience in Finland and France, particularly in relation to the order in which key parts of the nuclear island are built and how they are fabricated, has benefited the project in Taishan, such that that project is now running to time and to budget.

The hon. Gentleman also asked about the strike price potentially being too high in relation to the EDF plant. I can assure him that our estimate of the future price of wholesale electricity is that it will rise into the 2020s. That has been a careful assessment. Nuclear electricity is a key part of our energy mix. He will know that other technologies also involve a very high cost to the consumer right now. The mix is vital, so we believe that this is not too generous. EDF aims to have the plant up and running in 2023. We expect that, with a significant proportion of our power stations due to close over the coming decades, we will need that level of investment to replace that capacity.

The hon. Gentleman also asked about tidal power. Personally, I am as excited as he is about the prospects for marine and tidal power, but again he will accept, I am sure, that this is another new technology, as yet unproven. We have taken the first steps. We expect it to be a big contributor to our energy mix, but not the only one.

I emphasise that, as Energy and Climate Change Minister, I have two priorities: security of supply and keeping the lights on. In securing those priorities, I want to keep bills as low as possible. With new nuclear in the energy mix, I believe we can achieve all those things. Nuclear power is a low-carbon, proven technology that will increase the resilience of the UK’s energy system and, rather than costing more money, the full nuclear programme will, on current projections, save households about £78 on their bills in 2030.

I congratulate the hon. Member for Newport West on his attention to this very important subject, but I want to be clear that the Government believe that developing energy from new nuclear is the right thing to do in the UK.

[Paul Flynn]

rose—