Nuclear
Existing Infrastructure
There are currently 12 operational nuclear power stations in the UK, of which eight are British Energy and the remaining operated by British Nuclear Group. Three facilities (Sizewell A, B and Bradwell) are located in the East of England. In total, nuclear power stations represent around 20.4% of the British electricity production in 2005. By 2035 however, the current fleet of nuclear power stations will close, creating a significant gap in generating capacity. This problem will be exacerbated by the shut-down of most coal power stations during the period and rising cost of gas power.
Sizewell A, located on a 10 hectare site on the Suffolk coast, is an twin reactor Magnox power station, with a nominal capacity of 440 MW. On a typical day, the station supplied more than 10 million kWh of electricity - enough to serve the energy needs of a third of East Anglia. Sizewell A ceased generating on 31st December 2006.
Sizewell B is a Pressurised Water Reactor (PWR) with a nominal capacity of 1,188MW. It is capable of supplying over 1.5 million households - roughly the equivalent of the daily domestic needs of Suffolk and Norfolk. The station supplies 3% of the UK's entire electricity needs. The plant should reach its life limit in 2035 though extension could be granted provided that satisfactory performance and sustained safety of operation is warranted. According to British Energy, the plant is providing employment to 497 full time staff including 16 apprentices, all living within 25 miles of the plant.
Nuclear Decommissioning
In the UK, the Nuclear Decommissioning Authority (NDA) is responsible for the dismantling of former nuclear power stations. Currently, ten nuclear power stations are undergoing decommissioning. Sizewell A joined the list in 2006 as will the 14 other existing British reactors by 2035. The NDA estimated previously that the decommissioning cost for UK reactors would amount to £56 billion (annual spend £2.2 billion), but Sir Anthony Cleaver, the head of the authority, stated that the actual cost would be closer to £72 billion. Costs are most likely to escalate as better estimates can be made further in time.
The decommissioning business is therefore a very large opportunity for the whole UK energy industry and the NDA is keen to develop a competitive framework to ensure both reduction of costs and the development of innovative technologies. Whilst the NDA directly interfaces only with Tier 1 contractors, typical sub-contracting levels are high, the NDA mentioning a 50-60% bracket for Sellafield, and 66% at Dounreay. Identification and liaison with Tier 1 contractors will be therefore paramount for developing business prospects in this field.
In addition, the International Atomic Energy Agency has estimated in a recent study that clean-up of the world's existing nuclear waste will cost as much as US$ 1 trillion over the next fifty years, with the bulk needed before 2040. Intense technology development in the field of robotics, SCADA, confined transport, heavy civil structures and of course nuclear engineering will be required. Primary target countries will be the USA, China, Russia, France and Japan in addition to the current Soviet Union Legacy program led by the World Bank. Note that since around two hundred reactors in the world will need to be decommissioned in the next 20 years, the sector will provide the clean-up industry with a reliable turnover for at least half a century.
New Build Nuclear
The recent Energy Review has attracted much scrutiny as it has paved the way for new build nuclear. Consensus in the industry is that the proposed development of a new generation of reactors, aimed at replacing the current ageing population, will approximately translate into about six new power stations being built by 2020.
In order to assist the development of such new capacity, ease of the regulatory framework is likely to be implemented to fast-track projects. In order to overcome local opposition, the government aims at using the power conferred upon the ‘States of Need', leaving the Government sole judge in the decision. As the industry cannot develop without government intervention indirect support is likely to be provided. The nuclear lobby is now pushing forward for a nuclear equivalent of the Renewable Obligation Certificate (ROC), although the carbon emissions linked to nuclear-fuel production will make it difficult.
The odds in favour of a reactor made in the UK are low given the fact that no such venture has been attempted since the 1980s. In addition, the industry would need a considerable amount of human resources which does not exist anymore and would take years to develop. A paper published by the Royal Academy of Engineering states that from around 7,800 staff employed in nuclear generation in 1995, a little more than 4,000 remain. Without action, by 2020, this figure is likely to be smaller than 1,700.
In the longer term, the development of Fusion Power could become an important prospect for the East of England. Indeed the presence of Cambridge University has the required international aura to attract the attention of the ITER consortium for a fusion power materials research centre.
*Taken from the EEEGR Business Plan 2007-2010
