Small Modular Reactors Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Jim Shannon
Main Page: Jim Shannon (Democratic Unionist Party - Strangford)Department Debates - View all Jim Shannon's debates with the Department for Business, Energy and Industrial Strategy
Small Modular Reactors
Jim Shannon Excerpts(5 years, 9 months ago)
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Jim Shannon (Strangford) (DUP)
Thank you, Mr Paisley. It is a pleasure to speak in the debate. I congratulate the hon. Member for Copeland (Trudy Harrison) on securing it and on arguing the case for her constituency so passionately. She mentioned that you were listening intently, but you always do—that was never in doubt.
Like the hon. Lady, I see nuclear energy and our ability to produce it as essential. I have always supported it, even on my local council many years ago and in the Northern Ireland Assembly. We must have that ability until, if ever, we have the capacity to produce energy wholly through renewable energy in a reliable and consistent manner. We must have the ability to secure our energy supply until that stage comes. I also wish to plug Harland & Wolff and its engineering in Belfast. It has the capacity to be involved in forwarding some of these projects with its engineering expertise.
I agree with colleagues who have stated clearly that nuclear power is clean, producing fewer greenhouse gases and thus contributing to the fight against the danger of climate change. It is accepted that nuclear production does not directly produce sulphur dioxide, nitrogen oxides, mercury or other pollutants associated with the combustion of fossil fuels, which is why it is so important that we use that form of energy.
With that as my beginning point—in this race to the end of my speech—it is not difficult to see where I am going with my brief comments. The UK has 15 existing reactors, generating about 21% of our electricity, and 13 others are at various stages of planning. I am thankful that the Government have announced initiatives and funding for advanced reactors, including £250 million for development, and that there is support for nuclear power in the industrial strategy, as well as specific funding elsewhere.
I would certainly be supportive of a Government strategy regarding the regulated asset base model, which regulates a rate of return for investors during a power plant’s construction. An interesting article that I read through the Royal Society of Chemistry highlighted that the RAB model
“is more attractive to a greater pool of investors…The cost of capital associated with it is lower”.
That
“reduces the financial risk for investors and has an added benefit for the government. Such a package could allow the state to negotiate a lower electricity strike price as the investor will take on less capital risk.”
That is positive, and I look to the Minister to respond to that. It also raises the question as to why the form is limited to nuclear energy, when it could be used to keep all industry prices down, but I understand that that is a debate for another day.
I support small nuclear modular reactors; we need that form of energy for the foreseeable future. We need to secure it and find a way forward, and I support the Government’s attempts to do that. Again, I congratulate the hon. Member for Copeland on securing the debate and thereby giving us a chance to contribute.