MarketWatch examines the U.K.'s recent policy shift toward nuclear energy, including uncertainties surrounding scope, rules, and planning permission.
As uncertainty over the future of energy supplies grows, with Russia flexing its muscles over natural gas supplies and fighting between Israel and Lebanon pushing oil futures ever higher, the U.K. government's recent policy shift toward favoring nuclear energy may appear visionary.
Nuclear power is seen by the British government as the best way of reducing its reliance on imported energy -- the North Sea now doesn't produce enough natural gas to meet the country's demand -- while helping to ease climate change as part of its target of cutting carbon emissions by 60% by 2050.
The government turnaround was sparked by the spiraling cost of natural gas and instability in the regions that produce it, along with the introduction of a European emissions trading program, which will increase costs for high-carbon energy sources such as natural gas and coal.
Now a policy decision has been made, policymakers are planning to push ahead as fast as possible. The next step is a paper, due around the end of the year, which will provide more detail on how companies can go about planning new nuclear power plants and is intended to set out the country's power policy for the next 30 to 40 years.
And if nuclear is set for a comeback, there are many firms that will hope to benefit, from the utilities that would own and operate the plants to the specialist engineering firms that would construct them.
Electricite de France (FR:EDF: news, chart, profile) is one of the utilities seen as most likely to operate a new reactor in Britain.
EdF already operates around 20 nuclear power plants in France. Per Lekander, an analyst at UBS, said the firm is significantly short of generating capacity in the U.K. -- a shortfall it could offset with a major nuclear project.
"EdF is probably considering one plant, but with at least two reactors," said Lekander. A facility like that could generate 3 to 4 gigawatts of energy, enough to power over three million households, and more than making up for EdF's lack of U.K. generating capacity.
"EdF supports the commitment to a diverse energy mix. It is a major step towards providing a clear and stable framework, allowing companies like ours to make the right investment decisions for the long term," said Vincent de Rivaz, chief executive of EdF's U.K. division in a recent statement. But Rivaz warned there is still a lot of work to do on the detail if the new nuclear policy is to succeed. . . .
As uncertainty over the future of energy supplies grows, with Russia flexing its muscles over natural gas supplies and fighting between Israel and Lebanon pushing oil futures ever higher, the U.K. government's recent policy shift toward favoring nuclear energy may appear visionary.
Nuclear power is seen by the British government as the best way of reducing its reliance on imported energy -- the North Sea now doesn't produce enough natural gas to meet the country's demand -- while helping to ease climate change as part of its target of cutting carbon emissions by 60% by 2050.
The government turnaround was sparked by the spiraling cost of natural gas and instability in the regions that produce it, along with the introduction of a European emissions trading program, which will increase costs for high-carbon energy sources such as natural gas and coal.
Now a policy decision has been made, policymakers are planning to push ahead as fast as possible. The next step is a paper, due around the end of the year, which will provide more detail on how companies can go about planning new nuclear power plants and is intended to set out the country's power policy for the next 30 to 40 years.
And if nuclear is set for a comeback, there are many firms that will hope to benefit, from the utilities that would own and operate the plants to the specialist engineering firms that would construct them.
Electricite de France (FR:EDF: news, chart, profile) is one of the utilities seen as most likely to operate a new reactor in Britain.
EdF already operates around 20 nuclear power plants in France. Per Lekander, an analyst at UBS, said the firm is significantly short of generating capacity in the U.K. -- a shortfall it could offset with a major nuclear project.
"EdF is probably considering one plant, but with at least two reactors," said Lekander. A facility like that could generate 3 to 4 gigawatts of energy, enough to power over three million households, and more than making up for EdF's lack of U.K. generating capacity.
"EdF supports the commitment to a diverse energy mix. It is a major step towards providing a clear and stable framework, allowing companies like ours to make the right investment decisions for the long term," said Vincent de Rivaz, chief executive of EdF's U.K. division in a recent statement. But Rivaz warned there is still a lot of work to do on the detail if the new nuclear policy is to succeed. . . .
