Government Possibilities for Paying for New Reactors

Boris Johnson frustrated with Rishi Sunak over ‘resistance’ to new nuclear power plants. Tension grows over Treasury’s apparent reluctance to embrace ‘dash to nuclear’ that PM believes is needed to shore up UK’s energy supplies. Government sources said Mr Sunak’s refusal to endorse the Prime Minister’s “big bet” on a radical expansion of the Government’s plans for nuclear power risked derailing a key element of the energy security strategy promised by Mr Johnson earlier this month. Mr Johnson is understood to be frustrated that Mr Sunak appears reluctant to embrace a “dash to nuclear” that the Prime Minister believes is needed to shore up Britain’s energy supplies long-term in the face of a crisis fuelled by Vladimir Putin’s invasion of Ukraine. The Prime Minister is said to believethat the Treasury was at least partly responsible for scuppering earlier attempts to get nuclear energy into place, on account of its cost, and MrJohnson urged the Chancellor to overcome resistance by officials. Mr Johnson is due to meet nuclear power companies on Monday to discuss how quickly new plants could be rolled out. The tension between Mr Johnson and his Chancellor comes days before Mr Sunak’s spring statement on Wednesday, when he is expected to unveil measures to address the cost of living crisis. The Chancellor’s aides have refused to share details of Mr Sunak’s announcements with their counterparts in No 10. One government source suggested that Mr Sunak’s resistance to the Prime Minister’s nuclear plans was a significant factor behind the delay publishing the strategy – a claim denied by another source. The strategy is due to be published at the end of this week, or early next week. Telegraph 20th March 2022  https://www.telegraph.co.uk/politics/2022/03/19/boris-johnson-frustrated-rishi-sunak-resistance-new-nuclear/ Ministers are exploring the creation of a state-owned nuclear company that would take stakes in future power stations, to reduce Britain’s reliance on foreign energy. Business secretary Kwasi Kwarteng is understood to be weighing up the plans in an effort to jump-start new nuclear projects,which have suffered years of delays. Nuclear power is a pillar of the government’s plan to reach net zero by 2050, along with renewable sources of energy such as offshore wind. Building new projects is key to weaning the UK off oil and gas from overseas, Kwarteng has argued in recent weeks. It is unclear whether a state nuclear company will be part of the government’s updated energy strategy, due imminently. Last week, chancellor Rishi Sunak insisted that Boris Johnson delay the strategy to give him more time to establish the costs of building nuclear and renewables projects. Ministers want to remove Chinese investment from future nuclear projects amid security concerns, but have struggled to entice new investors. A state company would demonstrate the government’s commitment to the sector. Times 20th March 2022  https://www.thetimes.co.uk/article/ministers-eye-state-backed-nuclear-power-company-g8jq9200f Readers’ poll: should the UK spend billions on new nuclear powerstations? The government is due to unveil a new energy security strategy this week. It is expected to raise targets for the proportion of our power generated from renewables such as offshore wind stations — but may also include large investment in conventional nuclear power. Many argue that new nuclear power stations are essential to ensure the UK’s energy security while meeting our net zero targets, and provide the reliable, constant electricity which intermittent renewable sources cannot. Those who oppose such investment say nuclear is vastly expensive to both the government and the consumer, and the long-term disposal of dangerous nuclear waste has still not been adequately addressed. What’s your view? Times 20th March 2022  https://www.thetimes.co.uk/article/readers-poll-should-the-uk-spend-billions-on-new-nuclear-power-stations-87lsjtj59