With the upcoming United Kingdom (UK) general election scheduled for the 4th of July 2024, the attention towards mitigating the climate crisis has drawn nuclear energy into the spotlight. Both major political parties have made commitments to invest in the UK’s nuclear power industry, and with polls indicating a probable victory for the Labour party, focus has shifted to the future of nuclear energy under a potential Labour administration.
In the 2023 Spring Budget, Jeremy Hunt announced the establishment of Great British Nuclear, a public corporation designed to stimulate investment in the UK’s nuclear power sector with the objective of generating 25% of the nation’s electricity by 2050. This new policy also redefined the status of nuclear power, categorizing it as a ‘green’ energy source alongside renewables such as wind and hydropower.
Nuclear energy not only presents renewable attributes but also contributes to energy security. The accomplishments of France, where around 70% of electricity was generated from nuclear power in 2023, through its 56 operational reactors, serves as a source of inspiration for the UK. However, the UK has grappled with chronic underinvestment in nuclear energy, leading to only 12% of electricity being generated through nuclear power as of recent times.
The Labour manifesto commits to establishing Great British Energy (GBE) within its first year in power. This initiative aims to stimulate increased investment in the energy industry by investing in power stations and Small Modular Reactors (SMRs), as well as completing projects such as Hinkley Point C.
Nonetheless, there are substantial challenges within the UK nuclear industry that an incoming government must confront. The proposed Sizewell C plant has encountered delays and has struggled to secure necessary levels of investment. Moreover, the Hinkley Point C project, initially projected for completion in 2017, is now estimated to become operational no earlier than 2029 due to escalating costs.
To realize its GBE commitments, Labour will require substantial levels of investment, estimated to range between £61 to £82 billion, creating a significant disparity with the £8.3 billion pledged so far. Additionally, addressing grid capacity and electrification issues are crucial aspects that have not been fully addressed.
Despite these challenges, there are reasons to be optimistic about the future of nuclear energy in the UK. The development of Small Modular Reactors offers an opportunity to address issues with older plant technology and create new employment opportunities. Furthermore, the recent acquisition of new sites for large plant construction and investment in a new Uranium Enrichment Plant demonstrate a dedication to the future of nuclear energy in the UK.
As the UK continues to navigate the transition to renewable energy sources, nuclear energy represents a viable alternative and a crucial element in ensuring energy security. However, addressing the necessary investment to fulfill these ambitions will be pivotal for the success of nuclear energy under a potential future Labour administration. Only time will reveal whether the GBE initiative can effectively drive investment and fulfill the pledge of achieving 25% nuclear electricity generation in the UK, guaranteeing a sustainable future for nuclear energy in the country.