Question

To ask the Secretary of State for Energy and Climate Change, how many Generation III reactors of the type currently in development in the UK are currently operating worldwide; and what assessment she has made of the economic and operational effectiveness of those reactors.

The reactor types being proposed for UK build by electricity suppliers are all evolutions of similar, tried and tested light water reactor systems, namely the Pressurised Water Reactor (PWR) and Boiling Water Reactor (BWR). Examples of these have been in operation for many years and there are around 356 currently operating worldwide. The UK has a robust regulatory system and any nuclear reactor used in the UK must meet our rigorous safety, security and environmental standards. The Office for Nuclear Regulation (ONR) is responsible for safety regulation of the UK industry.

Independent estimates for DECC suggest that a First of a Kind (FOAK) new nuclear plant is expected to have a levelised cost of between £79-102/MWh with a central estimate of £89/MWh. As nuclear reaches Nth of a Kind (NOAK) status levelised costs are projected to fall to between £67-89/MWh with a central estimate of £77/MWh, making it a cost effective large scale low carbon technology.­^{1 2}

¹ DECC (2013), Electricity Generation Costs. Quoted costs are using technology specific discount rates.

² The levelised cost is a standardised measure of the net present value of lifetime costs divided by generation for a generic plant under each technology. Given the uncertainties involved, DECC levelised cost estimates are not intended to provide any indication of potential future strike prices for a particular technology or plant under the Feed-in Tariff with Contracts for Difference (CfD) being introduced as part of Electricity Market Reform. Strike prices will vary according to the length and design of the FiT CfD contract, technology, financing costs and in a few limited cases specific project characteristics. To the extent that project specific cost discovery processes are undertaken these will form the starting point of any process of setting a strike price, rather than relying on levelised cost data.