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North West Nuclear Engineering Societies Annual Dinner

Malcolm Wicks MP,  Minister of State for Energy
Haydock Park Racecourse,  15 May 2008

I would like to start by congratulating you on the merger of the Institution of Nuclear Engineers and British Nuclear Energy Society to form the Nuclear Institute.

I attended the launch of the Institute and my Secretary of State, John Hutton, spoke later at the Nuclear Conference which you sponsored.

The Institute and your Societies will be all the more important as the UK builds new nuclear power stations, helping develop a skilled workforce, providing impartial advice on nuclear issues, and ensuring public confidence in the industry and its staff.

Public confidence is crucial. There is increased acceptance of the argument in favour of nuclear power, but we must continue to make that argument and to show that we are addressing people’s concerns.

The Government is clear that new nuclear is a necessary part of the energy mix if we are to meet our twin challenges: tackling climate change and meeting energy demand reliably and at competitive prices.

We need to replace a third of our electricity-generating capacity. And to meet our 2050 carbon targets we need to produce this electricity with zero or almost zero carbon emissions. So in the long term, we need to produce electricity only from nuclear power, from renewable energy, or from fossil fired stations fitted with technology to capture and store CO2.

The direction of our energy policy is clear, therefore. We need to use energy more efficiently. We need to deploy low-carbon technologies. We need to diversify. And we need to make the most of local sources of energy.

The best way to achieve this is through competitive markets. Private-sector investment is the quickest route to change and it will be for companies to build and operate new nuclear power stations.

Government needs to facilitate this, and so we are delivering the programme set out in our Nuclear White Paper.

The Energy Bill provides for the financing of waste and decommissioning from new nuclear power stations. John Hutton and I have taken the Bill through the House of Commons and it is now going through the House of Lords. We have also published our consultation on the guidance on how these financing arrangements will work.

Defra have published their analysis of responses to their consultation on Managing Radioactive Waste Safely, and will publish their White Paper shortly.

The regulators are progressing with their assessments of reactor designs. And we have published Justification guidelines and calls for application.

We have consulted on the scope of the Strategic Environmental Assessment. The responses will feed into the draft Strategic Siting Assessment criteria, on which we will publish a consultation shortly.

These criteria will enable us to identify geographical areas that would be likely to be ruled out and to invite nominations for sites.

The future of British Energy’s sites is the subject of much speculation. And a strong level of interest has been shown in the Nuclear Decommissioning Authority’s exercise to gauge interest in its land and other assets.

However, no decisions will be taken on the potential acceptability of any site until the end of the Strategic Siting Assessment process in autumn next year, when we will publish a National Policy Statement including the criteria and a list of sites. Planning applications should then be possible between 2010 and 2012.

These actions show that we are on track to deliver a framework that will enable energy companies to begin construction of the first new nuclear power station in 2013 or 2014 and start operation between 2017 and 2020.

There is more we need to do. We recognise the importance of a clear carbon price framework. The rules proposed for the next two phases of the EU Emissions Trading Scheme will make the scheme work effectively. Beyond that, we need to work for an international agreement that includes long term goals and, eventually, a global carbon market.

Our international work is vital. The UK and French regulators have announced their intention to enhance the sharing of experience and technical findings from their licensing processes, and useful discussions have taken place between the UK and US regulators on increasing co-operation on design assessment. This will help increase confidence that new nuclear power stations will be ready in time.

The formation of the Nuclear Institute is one sign that industry is focusing on the need for a skilled workforce to build and operate new nuclear power stations.

We must continue to encourage science teaching in schools and relevant courses and research in universities, and to support the work of the Sector Skills Councils. Here in the North-West, the University of Central Lancashire [Preston] has launched Britain’s first degree in nuclear decommissioning and is developing a new degree in nuclear technology. And the National Skills Academy for Nuclear in Cockermouth is working with schools and colleges to develop skills training across the industry.

Industry have made it clear that they see the UK as a viable market for investment in new nuclear.

But we want to go further and establish the UK as the world’s leading market for nuclear power. The revival of nuclear energy and the rapid growth of renewables together provide the biggest opportunity for our energy economy since North Sea oil and gas. Replacing our existing nuclear capacity could represent around £20 billion of business for UK companies, and thousands of highly skilled jobs.

The North-West is well placed to benefit from these opportunities, not least with “Britain’s Energy Coast” in West Cumbria.

On 12 June, John Hutton and I will be hosting a conference in London to showcase to business what Government is doing to encourage investment and to listen to views on how we can make new build a success in the UK.

Your societies will have an important role to play in making new build a success. Please join me in a toast “to the Societies”.