Recommendations & Conclusions
17 items
1
Conclusion
Third Report - Nuclear energy in Wales
Accepted
While we have heard dividing evidence on the role that nuclear energy should play in achieving the UK’s net zero targets and ensuring domestic energy security, there is a broad consensus between the UK and Welsh Governments, and the majority of our witnesses, in favour of new nuclear energy generation.
Government response. The government maintains a positive dialogue with nuclear site owners and has established Great British Nuclear (GBN) to drive its ambition for up to 24GW of nuclear energy by 2050. This confirms the stated consensus on new nuclear energy generation.
Wales Office
2
Conclusion
Third Report - Nuclear energy in Wales
Accepted
The storage technology required for an entire electricity system run on renewable energy is not there yet. Therefore, on balance, we consider that nuclear energy has a strong role to play, as part of a mix of low carbon sources, in achieving net zero and energy security.
Government response. The government aligns with the committee's conclusion, detailing its ambition for up to 24GW of nuclear energy by 2050 and the establishment of Great British Nuclear (GBN) to drive the UK's new nuclear programme.
Wales Office
3
Conclusion
Third Report - Nuclear energy in Wales
Not Addressed
The previous attempt to bring a new nuclear project to Wylfa by Hitachi has left scars on the local community. We are concerned that expectations are being raised again on Ynys Môn and question how long the uncertainty can continue about whether or not a new nuclear build will be …
Government response. The government outlines its long-term nuclear ambition and plans to develop a new National Policy Statement and consult on siting policy. However, it explicitly states that no decisions have been made on specific sites or technologies, which does not address …
Wales Office
4
Recommendation
Third Report - Nuclear energy in Wales
Rejected
Given that the land at Wylfa Newydd is owned by Hitachi, it is unclear what the current state of play is at the site. If there is to be new nuclear at Wylfa, the issue of ownership of the land needs to be addressed. We reiterate a recommendation of our …
Government response. The government rejects the specific recommendation to encourage Hitachi to sell or join a consortium, stating that any decision to sell the Wylfa Newydd site is a commercial one for Hitachi. They confirm ongoing dialogue with site owners and that …
Wales Office
5
Conclusion
Third Report - Nuclear energy in Wales
Deferred
We have heard from a wide range of industry representatives that Wylfa is one of the best sites for nuclear development and it is difficult to see how the UK Government can deliver its nuclear ambitions without taking forward a project at Wylfa. We consider that Wylfa should be the …
Government response. The government acknowledges the desire for a settled policy but states no decisions have been taken on which sites future projects will proceed with. It will develop a new National Policy Statement and consult later this year on future nuclear …
Wales Office
6
Recommendation
Third Report - Nuclear energy in Wales
Accepted in Part
While successfully developing a Small Modular Reactor (SMR) would present a huge opportunity for the UK, the technology is still in development phase. If the UK Government is serious about nuclear energy now it needs to pursue new gigawatt- scale plants alongside its policy on SMRs.
Government response. The government acknowledges the recommendation to pursue gigawatt-scale plants alongside SMRs, stating that while Great British Nuclear (GBN) will initially focus on SMRs, it will also support the government's consideration of further large Gigawatt-scale projects.
Wales Office
7
Recommendation
Third Report - Nuclear energy in Wales
Deferred
The UK Government, and Great British Nuclear, should continue to engage with Cwmni Egino on its ambition for Trawsfynydd to become the first site to host Small Modular Reactors (SMRs) in the UK. We urge the Government to include the Trawsfynydd site in the new Nuclear National Policy Statement as …
Government response. The government states it will continue to engage with Cwmni Egino and will develop a new Nuclear National Policy Statement (NPS) to set out planning policy beyond 2025. It will consult later this year on siting policy for new nuclear …
Wales Office
8
Conclusion
Third Report - Nuclear energy in Wales
Acknowledged
The introduction of the Regulated Asset Base (RAB) model is welcomed as a better alternative to the Contracts for Difference (CfD) scheme for nuclear developments. However, financing new nuclear projects is not straightforward and there will still be challenges under the RAB model. For a development to progress at Wylfa, …
Government response. The government acknowledges the complexities of financing nuclear projects under the RAB model and reiterates its belief that the model encourages private investment while protecting consumers. They outline existing mechanisms like value for money assessments, the Nuclear Energy (Financing) Act …
Wales Office
9
Recommendation
Third Report - Nuclear energy in Wales
Accepted
We recognise the high cost of construction of nuclear energy plants and the large upfront investment needed to get a project to final investment decision. We hope that the Regulated Asset Base (RAB) model will help overcome these investment challenges. However, there are valid concerns about the risk to consumers, …
Government response. The government states that existing legislation (Nuclear Energy (Financing) Act 2022) and current processes, including HMT Green Book approvals and Major Project Review Group approvals, ensure consumer interests are considered and projects are monitored. Ofgem, as the economic regulator, will …
Wales Office
10
Conclusion
Third Report - Nuclear energy in Wales
Acknowledged
We welcome the UK Government’s announcement that nuclear energy will be included in the green taxonomy, subject to consultation. We consider that this will unlock new avenues of private investment for nuclear development and send the signals needed to the financial sector that nuclear energy is an attractive investment. (Paragraph …
Government response. The government welcomes Hitachi's continued stewardship of the Wylfa Newydd site and has a positive relationship and dialogue with all nuclear site owners, but no decisions have been taken over which technologies future projects will proceed with, or at which …
Wales Office
11
Conclusion
Third Report - Nuclear energy in Wales
Acknowledged
New nuclear developments at Wylfa or Trawsfynydd could be a game-changer for the north Wales regional economy. Such projects would play an important role in the UK Government’s Levelling-Up agenda by bringing high-skilled, well-paid, long-term job opportunities to a rural area of the UK. It is vital that north Wales …
Government response. The government welcomes the committee's session and recognises the potential significant impact of new nuclear developments on the North Wales economy, noting the strong local interest and support.
Wales Office
12
Recommendation
Third Report - Nuclear energy in Wales
Accepted
If the UK Government is going to realise its ambitions for nuclear energy, investment in skills is essential and serious work needs to be done on how the required skills can be developed. We call on the UK and Welsh Governments to work closely together to support the skills sector …
Government response. The government states it already works closely with industry and the Welsh Government through the employer-led Nuclear Skills Strategy Group (NSSG), with aligned strategic plans to address skills challenges. It collaborates with devolved administrations for a coherent approach, acknowledging education …
Wales Office
13
Conclusion
Third Report - Nuclear energy in Wales
Rejected
The contribution of businesses based in Wales to current nuclear developments at Hinkley Point C and Sizewell C demonstrates that, at least in part, the skills and supply chains for such projects are available in Wales. There should be investment in scaling up the Welsh nuclear supply chain to ensure …
Government response. The government rejects placing a requirement for minimum local content, stating that local and UK content in supply chains is a commercial decision for developers. It highlights that strengthening domestic capabilities is a high priority and welcomes companies supporting local …
Wales Office
14
Recommendation
Third Report - Nuclear energy in Wales
Deferred
While we welcome what feels like small steps in the right direction towards new nuclear at Wylfa, we do still question how much further down the path we are now to seeing a successful development than we were when Hitachi withdrew from the site. There will remain risks associated with …
Government response. The government acknowledges the need for settled policy and will develop a new National Policy Statement and consult on future nuclear siting this year, but states no decisions have been made on which technologies or sites, including Wylfa, will proceed.
Wales Office
15
Recommendation
Third Report - Nuclear energy in Wales
Accepted
We welcome the UK Government’s announcement that it will deliver a programme of new nuclear projects. We recommend that the Government publishes a medium to long-term programme for nuclear energy generation. The programme must set out how it will achieve its ambitions of up to 24GW of nuclear energy by …
Government response. The government commits to developing a new National Policy Statement (NPS) to outline planning policy for deploying new nuclear power stations beyond 2025. As a first step, it will consult later this year on a policy for how new nuclear …
Wales Office
16
Recommendation
Third Report - Nuclear energy in Wales
Accepted
We have heard strong representations from the nuclear sector for greater clarity and commitment from the UK Government on its ambitions. We put these representations to the UK Government ahead of the Spring Budget and welcome the launch of Great British Nuclear, as we called for. However, we are yet …
Government response. The government states Great British Nuclear (GBN) has been launched with funding to drive new nuclear projects. GBN's first priority is to launch a competitive process for Small Modular Reactor (SMR) technologies, with market engagement already underway and a down-selection …
Wales Office
17
Recommendation
Third Report - Nuclear energy in Wales
Acknowledged
One of the significant missing parts of the future of nuclear development is the lack of a utility developer in the UK, other than EDF-related companies. We recommend that the UK Government explains its plans to resolve this problem and whether there is a role for Great British Nuclear to …
Government response. The government acknowledges the challenges faced by past nuclear projects and states that Great British Nuclear (GBN) will aim to overcome hurdles and unlock barriers in the market to enable successful project delivery. However, it does not explicitly detail concrete …
Wales Office