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Four new reactors on the way in nuclear deal
Robert Lea, City Correspondent24 Sep 2008
The South-East is set to bear the brunt of a new fleet of nuclear power stations as the Government today gave the green light to reactors in Kent, Essex and Suffolk.
Gordon Brown gave his seal of approval to a £12.5 billion takeover of the UK's nuclear generation company British Energy by the French statebacked giant EDF in league with British Gas group Centrica.
As part of that deal it was announced that the new company will build two new nuclear reactors. One will be at Sizewell in Suffolk, the site of the last nuclear power station built in the Nineties, and the other at Hinkley Point in Somerset.
It was also confirmed that EDF will have permission to sell land to rival companies like E.On or its fellow German company, RWE, the company that owns npower, so that they can build new reactors on sites that include Bradwell in south Essex and at Dungeness in Kent.
The project, which could deliver new working reactors by 2017, is likely to cost more than £20 billion but will also create thousands of construction jobs.
"New nuclear is becoming a reality," said Mr Brown whose brother Andrew is a senior director at EDF.
"This deal is good for the taxpayer and a significant step towards the construction of a new generation of nuclear stations to power the country."
Despite the opposition which will come from environmental groups and from locals in the areas affected, the Prime Minister said nuclear power will address many problems in the looming UK energy crisis.
"Nuclear is clean, secure and affordable,"-he said. "Its expansion is crucial for Britain's long-term energy security as we reduce our oil dependence and move towards a low carbon future."
Business Secretary John Hutton denied the Government was selling the country's energy industry to foreign raiders.
"EDF's bid to buy British Energy would be one of the largest foreign direct investments ever made in Britain and demonstrates the attractiveness of the UK market to the private sector.
"Today is just the start. EDF's plans to build four new nuclear reactors will also create a wide range of jobs and wealth of opportunities for Britain's manufacturers.
"Our ambition is to have more than one nuclear operator and so to accelerate the building of new nuclear power stations," said Mr Hutton.
"There are strong signals of an appetite for this from the power industry and today's announcement mean a number of sites could be made available for others to play a part."
Reader views (8)
This will cost the government a lot more £20bn. The people of England will rise up in protest against this dangerous radioactive pollution. We will NOT allow our children to be poisoned, and will do everything to prevent these power stations being built.
- Sean, London, 24/09/2008 23:58
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EDF is a company owned by the French government. UK companies are not allowed to own French infrastructure companies.
Until a couple of years ago(2006) the UK government owned one of the world’s largest producers and of nuclear power plants in the world, they got rid of the company as they could see no use for it.
Who do you think the UK government really supports?
- Ian, Reading, England, 24/09/2008 21:31
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So, is Gordon planning for his retirement? Will he join his brother on the Board at EDF?
- Paul Bradford, Monflanquin, France, 24/09/2008 20:23
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£20billion for new generation of Nuclear power stations is a bargain, particularly when set against the £40/60bn to prop up a few thousand Labour jobs at Northern Rock. Only critcism is that we have had to wait 10 years, and wasted Bns on the spurious notion that wind/wave power can supply uninterrupted electricity at a reasonable cost.
- Pip, Banstead. Uk, 24/09/2008 17:58
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What seems strange to me is that there has been no comment that I have seen which mentions that EDF is not a private company but owned by the French government. So now we have the French government dictating to us over nuclear power something which I consider to be a dangerous precedent.
- Dale, London England, 24/09/2008 13:48
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With all these foreign companies buying up our main companies, power and other service industries, combined with banks shipping, etc. We will soon be a multi-national conglomerate. But only one language will prevail. Our children must be well coached in this foreign tongue. So that they will be able to work in a executive position to compete with the imported labour. Should these continued sell off continue by the present governement
- A. Winsley, London England (or whats left of IT ), 24/09/2008 12:30
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This is absolutely amazing! Finally we are making head way in regards to having a realistic way to meet our energy needs of the future.
If only he could stop wasting so much money in wind power which as nice as it is, cannot been perceived as any sort of solution to our energy needs.
- Jp, London, 24/09/2008 11:58
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Typical of the media to present new nuclear build as a bad thing - "bear the brunt", indeed.
The reality is that we need more power stations NOW. Decades of government dithering over nuclear power means all but 1 of our existing stations has to close in the next 10 years. Couple that with the EU Large Combustion Plant Directive which will take out several large coal-fired stations even sooner than that, and there's a real risk the lights will go out by the middle of the next decade.
Politicians of all parties have been living for too long in a fantasy land populated with thousands of clean, green wind turbines, which of course will generate nothing when the wind isn't blowing (or, ironically, when it's too strong). It's not often I praise Labour for anything, but at last they're getting real about addressing the prospect of a 30% electricity power gap arriving really soon now. Given the current obsession with cutting CO2 emissions, nuclear is the obvious choice, and I hope they get the contracts signed and under way ASAP.
(It is of course a shame that it's going to have to be a French company that puts in the new plants, but that's just British short-termism (again) for you.)
- Austin Spreadbury, London, 24/09/2008 11:00
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