New Nuclear : Credibility Strained

As rumours and genuine information leak from central sources about the policy instruments and fiscal measures that will be signed into the United Kingdom’s Energy Bill, the subsidy support likely to be made available to new nuclear power is really straining credibility from my point of view. I am even more on the “incredulous” end of the spectrum of faith in the UK Government’s Energy Policy than I ever was before.

The national demand for electrical power is pretty constant, with annual variations of only a few percent. It was therefore easy to project that there could be a “power cliff” when supply would be curtailed from coal-fired generation under European legislation :-

https://www.gov.uk/government/organisations/department-of-energy-climate-change/series/energy-trends

http://www.bbc.co.uk/news/business-21501878
http://www.guardian.co.uk/money/2013/feb/19/ofgem-higher-household-energy-bills
http://www.telegraph.co.uk/finance/newsbysector/energy/9878281/Ofgem-boss-warns-of-higher-energy-prices-in-supply-roller-coaster.html
http://www.telegraph.co.uk/finance/newsbysector/energy/9878281/Ofgem-boss-warns-of-higher-energy-prices-in-supply-roller-coaster.html
http://metro.co.uk/2013/02/19/consumers-face-higher-energy-bills-as-the-uk-becomes-more-reliant-on-gas-imports-3503130/
https://www.gov.uk/government/news/decc-statement-on-alistair-buchanan-s-comments-on-energy-security-and-rising-gas-prices

The pat answer to how we should “Keep the Lights On” has been to wave the new nuclear fission reactor card. Look ! Shiny new toys. Keep us in power for yonks ! And hidden a little behind this fan of aces and jokers, a get-out-of-jail free card from the Coal monopoly – Carbon Capture and Storage or CCS. Buy into this, and we could have hundreds more years of clean power from coal, by pumping nasty carbon dioxide under the sea bed.

Now, here’s where the answers are just plain wrong : new nuclear power cannot be brought into the National Grid before the early 2020s at the very earliest. And options for CCS are still in the balance, being weighed and vetted, and very unlikely to clean up much of the black stuff until well past 2025.

When put through my best onboard guesstimiser, I came up with the above little graph in answer to the question : how soon can the UK build new power generation ? Since our “energy cliff” is likely to be in one of the winters of 2015 or 2016, and we’re not sure other countries we import from will have spare capacity, we have little option but to increase Natural Gas-fired power generation and go hell-for-leather with the wind and solar power deployment.

So no – it’s of no use promising to pay the new nuclear reactor bearer the sum of 40 or more years of subsidy in the form of guaranteed price for power under the scheme known as Contracts for Difference – they still won’t be delivering anything to cope with the “power drain” of the next few years. If this is written into the Electricity Market Reform, we could justifiably say this would destroy competition, and destroy any market, too, and be “central planning” by any other name – this level of subsidy is not exactly “technology-neutral” !

http://www.guardian.co.uk/business/2013/feb/19/edf-40-year-contract-nuclear-plant
http://www.telegraph.co.uk/news/uknews/9879257/Government-drawing-up-ludicrous-40-year-contracts-to-persuade-power-companies-to-go-nuclear.html

And offering the so-called Capacity Mechanism – a kind of top-up payment to keep old nuclear reactors running, warts and all – when really they should be decommissioned as they are reaching the end of their safe lives, is not a good option, in my book.

Offering the Capacity Mechanism to those who build new gas-fired power plant does make sense, however. If offshore wind power continues with its current trajectory and hits the big time in the next few years, and people want the cheap wind power instead of the gas, and the gas stations will be feeling they can’t run all the time, then the Capacity Mechanism will be vital to make sure the gas plant does get built to back up the wind power, and stays available to use on cold, still nights in February.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/66039/7103-energy-bill-capacity-market-impact-assessment.pdf
http://gastopowerjournal.com/regulationapolicy/item/1405-eurelectric-discards-eu-wide-capacity-mechanism-as-premature
http://www.eaem.co.uk/news/doubts-gas-strategy-will-lead-new-plants

Oh, people may complain about the idea of new “unabated” gas power plants, and insist they should be fitted with carbon capture, but new gas plants won’t run all the time in future, because renewable electricity generation will be cheaper, so forcing gas plant owners to pay for CCS seems like overkill to me. And, anyway, we will be decarbonising the gas supply, as we develop supplies of Renewable Gas.

I say forget the nuclear option – build the gas !

One thought on “New Nuclear : Credibility Strained”

  1. I read the Claverton posts with interest (not a member)and agree with your assessment.
    Further, I feel much of the comment from nuclear supporters have failed to understand the financial risk that money markets have warned about ‘going into nuclear risks downgrading.’ Only governments have ever financed nukes, they cannot fund them.
    Your simple chart explains precisely how the near future is key; build wind turbines, use gas as needed, ditch CCS and promote energy efficiency: last resort – rationing.

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