Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Nuclear reactors unlikely to help decarbonise energy grid, MPs warn

Published 13/02/2024, 09:00
© Reuters.  Nuclear reactors unlikely to help decarbonise energy grid, MPs warn
RR
-

Proactive Investors - Questions have been asked over how Britain’s anticipated rollout of small modular nuclear reactor (SMR) technology will aid energy decarbonisation targets.

Though the government has championed SMR technology in the planned decarbonisation of the UK’s energy grid, the Environmental Audit Committee argued on Tuesday that such reactors may not be built in time to even play a part.

“The first SMR is unlikely to be in operation by 2035, the date ministers have set for decarbonising the electricity supply,” environmental audit chair Philip Dunne pointed out in a letter to energy secretary Claire Coutinho.

“So, what role will SMRs have in an energy mix dominated by renewables and supplemented by existing and emerging large-scale nuclear?”

SMR technology, which is hoped to be cheaper and quicker to build than conventional reactors, is being spearheaded by the likes of Rolls-Royce Holdings PLC (LON:RR.).

Under new government body Great British Nuclear, the rollout of SMRs will be partly publicly funded and is expected from the early 2030s.

This is ultimately set to see modularised generators installed, which are based on standardised designs and so can largely be built in factories, to help make up government targets for 24 gigawatts of UK nuclear energy capacity by 2050.

However, the Environmental Audit Committee noted that government plans accounted for scenarios where as little as 12 gigawatts worth of capacity is rolled out come 2050.

“Uncertainty risks knock-on effects for industry confidence: not only for investment decisions relating to the initial build and the construction of factories to build reactor modules, but also for the support and growth of supply chains and skills,” Dunne added.

“We simply don’t yet know how much SMRs will contribute to electricity generation in the country, nor how much the roll-out is likely to cost the taxpayer.”

This comes after reports emerged on Monday that the government was in talks to buy land in north Wales suitable for housing a new nuclear reactor.

Westinghouse laid out plans last week to roll out its SMR technology via a private deal meanwhile, potentially seeking an alternative route to the government’s scheme.

How such plans develop remain to be seen though, with Rolls-Royce, GE Hitachi and Holtec the only companies to have submitted designs for regulatory assessment in the UK so far.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.