Concrete commitment by ministers on the future of nuclear energy,
and in particular at Wylfa in North Wales, is lacking despite
positive policy signals, the Welsh Affairs Committee argues
today.
In its report, Nuclear energy in Wales, MPs welcome the UK
Government’s ambition that nuclear energy is to meet up to a
quarter of UK electricity demand by 2050. Over the course of the
Committee’s inquiry, both the Energy Minister and interim-Chair
of Great British Nuclear referenced Wylfa as being an ideal site
for a new nuclear power station. The Committee is of the view
that new nuclear could be a game-changer for the north Wales
economy.
Yet despite this, major obstacles remain before Wylfa could be
home to a gigawatt-scale nuclear power station.
The limitations of finance models and failure to reach a
financial agreement with the UK Government led to the Hitachi-led
Wylfa Newydd project being suspended in 2019. The Contracts for
Difference (CfD) scheme has previously been used to support
nuclear energy projects. However, evidence to the Committee
suggested that a regulated asset base (RAB) model could reduce
the overall cost of a large-scale nuclear project by £30bn
compared with CfD. The Committee heard that RAB is more
attractive to investors, but the Committee is concerned that the
model puts some liability back to the taxpayer and careful
monitoring of the RAB model for Sizewell C is therefore crucial.
The issue of land ownership at Wylfa is a further barrier to
progress which must be addressed. At present, Hitachi owns the
site, and MPs call on the Government to encourage Hitachi to sell
it or join other developers to enable future development to
proceed.
If these key issues are resolved, we could see levelling-up, in a
rural part of the UK, in action.
Evidence to the Committee stated that a new nuclear power station
at Wylfa could support 10,000 jobs during the construction phase
and 900 permanent jobs once the power station is operational.
Many of these jobs would be highly-skilled and long-term, some of
which would have benefited from experience working at UK nuclear
sites Hinkley Point C and Sizewell C.
However, for this potential to be realised, the Committee is
calling for further development of skills and supply chains. The
Committee heard that there is a UK skills shortage which would
not support more than one nuclear power station being under
construction at any one time. Collaboration between the UK and
Welsh Governments, and the sector, is needed to overcome this.
The Committee's report also considered small modular reactors
(SMRs), but as these are still in the development phase, they
should be pursued in tandem with gigawatt-scale reactors. There
are opportunities to develop SMRs at Trawsfynydd, which could
further benefit North Wales.
Welsh Affairs Committee Chair, Rt Hon , said:
“Over the last couple of decades Wylfa has been in a
state of limbo. Local people have been enthusiastic about the
potential investment to the area only to have been left
disappointed when Hitachi pulled out of the Wylfa Newydd
project.
“We cannot allow the same to happen again. Despite the
positive policy changes and stronger rhetoric from ministers
about nuclear, a new power station at Wylfa is still far from
certain. Important obstacles remain on financing which is
limiting private sector investment, and on the issue of land
ownership which is preventing a new developer coming in. We must
see concrete action on addressing these issues before the next
general election, otherwise the uncertainty about the project
will increase.
“A gigawatt-scale nuclear energy project at Wylfa would
be a game-changer for the north Wales economy. The enormous
investment would illustrate levelling-up in action, creating
well-paid, high-skilled jobs, and we would be a step closer to
energy independence. I urge ministers to finally give a nuclear
energy project at Wylfa the green light.”
Notes to editors:
