Source · Select Committees · Welsh Affairs Committee

Third Report - Nuclear energy in Wales

Welsh Affairs Committee HC 240 Published 3 May 2023

Report Status

Government responded

Conclusions & Recommendations

17 items (9 recs)

Source

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Government Response

AI assessment · 17 of 17 classified

Accepted 6

Accepted in Part 1

Acknowledged 4

Deferred 3

Not Addressed 1

Rejected 2

Recommendations

1 result

17 Acknowledged

Require UK Government to explain plans for resolving the lack of utility developers in nuclear.

Recommendation

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 … Read more 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 play. (Paragraph 80) Nuclear energy in Wales 29 Written evidence: Letter from Rt Hon Stephen Crabb MP, Chair, to the Prime Minister, 3 March 2023 Dear Prime Minister, I am writing ahead of the UK Budget announcement on 15 March 2023 to draw your attention to the representations made to us during my Committee’s inquiry into Nuclear energy in Wales. I would like to extend my thanks again to the Secretary of State for Wales and the Minister of State for the Department of Energy Security and Net Zero for giving their time to attend our Committee meeting on 22 February. The Committee launched this inquiry following the publication in April 2022 of the British Energy Security Strategy, which set out the Government’s ambitions for 24GW of nuclear energy by 2050 and the creation of Great British Nuclear. Simon Bowen, advisor to the Government on the establishment of Great British Nuclear, told my Committee that “it will be disastrous if we waited another two years” because the “whole of the industry will lose faith” and that “we’ve got to have the courage to take an inter-generational view […] for low carbon and net zero”. The Strategy named Wylfa, north Wales, as a potential site for a new nuclear project. Since then, we have heard of growing concerns of a loss of momentum in delivery of the Government’s Strategy and consequently, further uncertainty over the future of the Wylfa site. We have heard from a wide range of industry representatives that Wylfa is considered the best site in the UK for new nuclear development. Indeed, it is difficult to see how Government can deliver its nuclear ambitions without taking forward a project at Wylfa. There is a strong view within the Committee that Show less

Government Response Summary

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 plans to resolve the specific problem of a lack of a utility developer.

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Conclusions (3)

Observations and findings

8 Conclusion 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 Summary

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 2022, and Ofgem's regulatory oversight to manage risks and ensure financial commitment.

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10 Conclusion 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 Summary

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 sites.

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11 Conclusion Acknowledged

Para 57

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 Summary

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.

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