UK Business Lobby Calls For More Investment In Nuclear
Written by NucNet
Monday, 13 July 2009
The UK needs to reduce its emphasis on renewables and increase its investment in nuclear energy or risk a system that is “not fit for purpose” by 2030, according to the influential business group CBI.
A new report by consultants McKinsey, commissioned by the CBI, says failure to act could result in electricity prices for both industry and consumers rising 30 percent by 2030.
It gives warning ahead of the government’s renewable energy strategy and White Paper (policy statement) on a low-carbon economy, due to be published this week, that the current plans do not go far enough to maintain energy security, stop price volatility or hit climate change targets.
The study calls for the government to change the energy mix within the next 12-15 months. Its suggestions include raising nuclear spend by 15 billion pounds (GBP) (24 billion US dollars, 17 billion euro) and carbon capture by GBP 7 billion, while cutting investment in expensive gas projects by GBP 11 billion and wind by GBP 12 billion.
The study urges the government to speed up the planning process by delivering the “long-promised” National Planning Statements and making sure the timeline for new nuclear must not be allowed to slip.
It also calls on the government to accelerate investment in the grid to ensure companies can invest in the connections and upgrades needed to support new electricity generation.
CBI deputy director-general John Cridland said large chunks of the UK’s energy infrastructure urgently need replacing, and the country have tough climate change targets to meet. “However, the government’s disjointed approach is deterring the private sector investment needed to get our energy system up to scratch, bolster security and cut emissions.”
He said: While we have generous subsidies for wind power, we urgently need the national planning statements needed to build new nuclear plants. If we carry on like this we will end up putting too many of our energy eggs in one basket. But by moving government policy in a different direction we can achieve a good balance of wind, nuclear, gas and clean coal.”
“With firms putting the finishing touches to their future investment plans, we need to act now if we are to achieve an energy system that is low-carbon, secure and sustainable.”
