Asked by
To ask Her Majesty’s Government what assessment they have made of
the capacity of the National Grid; and what plans they have to
commission the construction of small modular reactors to address
any capacity issues identified.
(Con)
Capacity margins for this winter are healthy, and we remain
confident that electricity security can be maintained under a wide
range of scenarios. Through the capacity market, we have secured
our main tool for ensuring security of supply—the capacity needed
to meet forecast peak demand—up to 2023-24.
On the second part of the noble Lord’s Question, we anticipate
that SMRs will be deliverable in the UK by the early 2030s, when
we also aim to demonstrate the next generation of AMRs.
(Lab)
I thank the Minister for that Answer. According to the climate
change committee, a quadrupling of low-carbon power generation
will be required if we are to meet the 2050 target for
decarbonising the economy, and a very substantial part of the
power will come from nuclear. Do Her Majesty’s Government still
believe that the construction of nuclear power stations can be
led and financed by private consortia, or do they now conceive
that, as in the case of the first generation of nuclear power
stations, they must be financed preponderantly, if not entirely,
by public funds? The best native technology for nuclear power
generation is the Rolls-Royce project to develop a small modular
nuclear reactor. Do Her Majesty’s Government have plans to
increase their very limited financial support for this
enterprise?
(Con)
There was a number of questions there; I will do my best. Having
consulted, we still believe that the regulated asset base model
is the best way of financing large-scale nuclear projects. As we
said in the energy White Paper, we are absolutely committed to
producing at least one new plan for a large nuclear project. On
SMRs, the £385 million allocated to advanced nuclear technologies
in the energy White Paper is a significant amount; we are
committed to it and we support the Rolls-Royce consortium
wholeheartedly.
(Lab)
My Lords, I am a strong supporter of the need to develop and
deploy small modular nuclear reactors, which should be designed
and built in the United Kingdom. However, we also need some large
nuclear power stations. Hinkley Point B and Hunterston B will
both close in 2022, and time is running out. Nuclear is crucial
for the provision of round-the-clock, weather-independent,
low-carbon electricity as the demand for electricity soars. The
building and commissioning of Sizewell C is now a matter of
urgency; we need to proceed, but with minimal and reducing
Chinese involvement. How many large nuclear power stations does
the current energy policy plan for the UK? Bearing in mind the
risks of Chinese involvement, can the Minister confirm that we
will not proceed with Bradwell B—the Chinese reactor—but instead
revive Japanese options such as Wylfa in Anglesey?
(Con)
The noble Lord, , is
always a great proponent of large nuclear, and I agree that we
are likely to need significant, large nuclear capacity in order
to meet our carbon reduction commitments at the least cost. We
will continue to engage with all viable companies and investors
on their proposals for future projects, including all of the
Sizewell C and other projects. The UK welcomes foreign investment
in our infrastructure. However, all investment involving critical
infrastructure, which includes nuclear, is subject to thorough
scrutiny and needs to satisfy our robust legal, regulatory and,
indeed, national security requirements.
(LD) [V]
Can I ask the Minister a little more about the timings for when
small modular reactors, advanced modular reactors and fusion may
come on stream? Is there a sufficient commercial time window for
generation III before it gets overtaken by the advanced modular
reactors if it is not actually up and running until 2030, which
is later than some projections for other countries?
(Con)
There is only one SMR that is scheduled for production before
2028, which is in Canada, and that may well slip anyway. As set
out in the energy White Paper, our aims are operational SMRs by
the early 2030s, a demonstrator AMR also by the early 2030s, and
a commercially viable fusion plant by 2040. We see these advanced
nuclear technologies as complementary, given strong synergies
between their supply chains and the multiple roles they could
perform in the energy system.
The Lord Speaker
()
The noble Lord, , is next. No?
I call the noble Lord, . Is the
noble Lord there?
(CB) [V]
My Lords, I declare my interests as in the register. The energy
White Paper commits to opening the generic design assessment to
SMR technologies this year. Can the Minister say how many GDA
slots will be available—by that I mean how many SMR designs will
be able to be supported through GDA—and at what point in the year
will SMR GDA open?
(Con)
I cannot give a specific answer on how many designs will be
expected to be announced, but we are currently finalising
arrangements to open the generic design assessment. We will
provide more information in due course. Our aim is to invite
applications to BEIS in quarter 2 of this year. In the meantime,
the Government have announced £40 million for developing
regulatory frameworks and supporting the supply chains for SMRs
in the United Kingdom.
(Lab) [V]
SMRs have the potential to help reach the UK’s net zero targets.
How many SMRs are typically needed to be operational by 2050 to
make a meaningful contribution to net zero? What are the cost
savings, as well as UK job creations, of SMRs and current nuclear
reactors?
(Con)
Analysis in BEIS released alongside the energy White Paper
demonstrates that in a low-cost system, the UK could need between
5 and 15 gigawatts of nuclear capacity. However, it is for the
market to determine the best solutions for very low emissions,
and reliable supply at the lowest cost to consumers. On job
creation, the Rolls-Royce consortium believes that a UK SMR
programme could support up to 40,000 jobs, and that each SMR
would be capable of providing power for 750,000 homes.
(LD) [V]
My Lords, the energy White Paper detailed many areas that will
require legislation in order for them to go ahead. For example,
to ensure that the grid has adequate capacity for the 40
gigawatts of wind power that the Prime Minister has promised by
2030, work needs to begin soon. Can the Minister say when an
energy Bill will be before us?
(Con)
The noble Baroness asks, on the surface of it, a perfectly
straightforward question, to which I would love to be able to
give an equally straightforward answer. The most I can say is
that following the long-awaited but much-welcomed energy White
Paper, an energy Bill will be introduced as soon as parliamentary
time allows. The measures will intend to realise the ambitions
and policy commitments set out in the White Paper, as well as to
drive forward the transition to net zero.
(PC) [V]
Will the Minister confirm that the Government are standing by
their earlier commitment—of central relevance to these
issues—namely, to locate the proposed national thermal hydraulics
facility in Anglesey?
(Con)
The noble Lord is absolutely correct; the commitment to build the
national thermal hydraulics facility was made when we launched
the nuclear sector deal in November 2018. It remains the
Government’s ambition to do so. The issues recently identified,
which have resulted in conversations about this, relate to the
need of the Rolls-Royce-led UK SMR consortium to have a slightly
larger facility delivered sooner than had been proposed in Ynys
Môn. The UK and Welsh Governments are in discussion about how to
resolve the planning and timing issues quickly, and they may be
able to start the construction of just the facility needed for
the Rolls-Royce machine before they proceed with the rest of the
site.
(Con)
I draw the House’s attention to my register of interests. The UK
Government are committed to a gigawatt-scale nuclear future, but
there are now some 72 SMRs in 18 countries. What can we learn
from the work that is being done elsewhere, and how can we
facilitate the exchange to ensure that we are benefiting from the
pace of the fastest in the moving camel train?
(Con)
My noble friend is absolutely right that the UK is still one of
the front-runners of the development of SMRs, because we
acknowledge that SMRs and, indeed, advanced modular reactors will
also play an important role as a low-carbon source. The
Government announced a £385 million advanced nuclear fund in the
energy White Paper, which will support the research and
development of both SMRs and AMRs. Of course, we watch with
interest the development of other research projects abroad.
The Lord Speaker
()
We will continue for a further 60 seconds because of the earlier
problem.
(CB) [V]
My Lords, will increased electricity demand require a national
grid to place greater reliance on existing submarine power
supplies from France, Belgium, the Netherlands and/or southern
Ireland? What impact on cost arises following the UK’s departure
from the European Union? Will this lead to reconsideration of the
future interconnector links planned with Norway and Denmark?
(Con)
Interconnection remains an important part of the UK’s energy
strategy, delivering lower costs, increased energy security and
better integrated low-carbon generation. The UK-EU Trade and
Cooperation Agreement provides for new, efficient electricity
trading arrangements over these interconnectors, making
electricity more affordable for consumers. Future projects to
Norway and Denmark are under construction, with the North Sea
link due to complete in autumn this year, and the Viking link due
for completion in late 2023.
