U.K. Picks Nuclear and Renewables for Future Power

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. has placed nuclear power and renewable energy at the heart of its long awaited Clean Growth Strategy initiative.

It has pledged £557 million ($738 million) for new renewable energy projects in the next round of energy auctions in spring 2019 "to drive economic growth and clean up the energy system." Offshore wind is expected to secure most of the funding. Industrial Info reported last month that offshore wind projects dominated the last U.K. government power auction, coming in far cheaper than new nuclear power for the first time. In the second round of the Contracts for Difference (CfD) auction, the government awarded contracts to three proposed offshore windfarms with a combined capacity of 3.2 gigawatts (GW). For additional information, see September 13, 2017, article - Offshore Wind is Big Winner in U.K. Power Auctions.

Energy Minister Richard Harrington said: "The government's Clean Growth Strategy will set out how the whole of the U.K. can benefit from the global move to a low-carbon economy. We've shown beyond doubt that renewable energy projects are an effective way to cut our emissions, while creating thousands of good jobs and attracting billions of pounds worth of investment."

The government said that it plans to work with industry to develop an ambitious deal for offshore wind, which could result in 10 gigawatts (GW) of new capacity, with the opportunity for additional deployment if this is cost effective, built in the 2020s. It is also aiming to deliver new nuclear power through the Hinkley Point C project, the first nuclear project in the U.K. for a quarter of a century. It intends to keep engaging with developers to secure a "competitive price" for future nuclear projects already in the pipeline.

The deal struck by the government with Hinkley Point C project developer Électricité de France SA (EPA:EDF) (Paris, France) has been criticised for the high price agreed for power generated there when the project is commissioned. In recent months Industrial Info highlighted that the project is running more than a year behind schedule and will cost an extra £1.5 billion ($1.9 billion) to construct. For additional information, see July 7, 2017, article - U.K. Nuclear Project Hits Delays, Costs Rise by $1.9 Billion.

The government aims to spend £460 million ($609 million) in the nuclear sector backing research work into future nuclear fuels, new nuclear manufacturing techniques, recycling and reprocessing and advanced reactor design. A further £265 million ($351 million) is earmarked for research into smart systems that will cut the cost of electricity storage, advance innovative demand response technologies and develop new ways of balancing the grid.

The government's Clean Growth Strategy was welcomed by Tom Greatex, chief executive of the U.K.'s Nuclear Industry Association. "This report shows a clear low-carbon growth strategy which, underpinned by the industrial strategy, will benefit both the U.K.'s low-carbon economy and our ambitious decarbonisation targets. As we move to reducing U.K. emissions further through the phase-out of fossil fuels, decarbonisation of heat and power and increasing the take up of electric vehicles, new nuclear, combined with renewables as part of a lower-carbon mix, will be a vital component of the U.K.'s reliable and secure electricity generation future."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.