Nuclear energy in Wales
Welsh Affairs Committee
Closed
Inquiry
The Welsh Affairs Committee has launched an inquiry looking at Nuclear energy in Wales . It will consider Wales’ role in the UK Government’s nuclear ambitions, the economic impact of a new nuclear power station at Wylfa and the development of nuclear technologies, such as small modular reactors. Read inquiry …
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9
Recommendations
8
Conclusions
2
Reports
5
Oral sessions
5
Events
Activity timeline 14 events
7 Jul
2023
2023
7 Jul
2023
2023
3 May
2023
2023
Report published
3 May
2023
2023
Report published
22 Feb
2023
2023
Oral evidence
22 Feb
2023
2023
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
25 Jan
2023
2023
Oral evidence
25 Jan
2023
2023
Formal meeting (oral evidence session) · Room 5, Palace of Westminster
14 Dec
2022
2022
Oral evidence
14 Dec
2022
2022
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
16 Nov
2022
2022
Oral evidence
16 Nov
2022
2022
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
Oral evidence sessions 5 sessions
22 Feb 2023
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Alan Raymant · Cwmni Egino
Kiera Harper · Department for Energy Security and Net Zero
Rt Hon David TC Davies MP · Office of the Secretary of State for Wales
Rt Hon Graham Stuart MP · Department for Energy Security and Net Zero
Simon Bowen · Great British Nuclear
25 Jan 2023
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Alastair Evans · Rolls Royce SMR
Ivan Baldwin · Bechtel
Mark Salisbury · Rolls -Royce SMR
Rory O'Neill · Westinghouse
14 Dec 2022
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Beccy Pleasant · Nuclear Skills Strategy Group
Daniel Maney · Prospect
Jasbir Sidhu · Nuclear Institute
Professor Bill Lee · Bangor University
16 Nov 2022
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Darryl Murphy · Aviva Investors
Julia Pyke · Sizewell C
Tom Greatrex · Nuclear Industry Association
19 Oct 2022
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Dr Doug Parr · Greenpeace UK
Dr Michael Bluck · Imperial College London
Dr William Bodel · Dalton Nuclear Institute, University of Manchester
Linda Rogers · PAWB (People Against Wylfa B)
Neil Crumpton · PAWB (People Against Wylfa B)
Professor Adrian Bull · Dalton Nuclear Institute, University of Manchester
Reports 2 reports · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Third Report - Nuclear energy in Wales | HC 240 | 3 May 2023 | 17 | Responded |
| Ynni Niwclear yng Nghymru - Crynodeb | HC 240 | 3 May 2023 | 0 | Responded |
Recommendations & Conclusions
17 results
1
Conclusion
Accepted
Third Report - Nuclear energy in W…
Broad consensus exists for new nuclear energy generation to achieve net zero and energy security.
While we have heard dividing evidence on the role that nuclear energy should play in achieving the UK’s net zero targets and ensuring domestic energy security, there is a broad consensus between the UK and Welsh Governments, and the majority …
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Government Response
The government maintains a positive dialogue with nuclear site owners and has established Great British Nuclear (GBN) to drive its ambition for up to 24GW of nuclear energy by 2050. This confirms the stated consensus on new nuclear energy generation.
Wales Office
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2
Conclusion
Accepted
Third Report - Nuclear energy in W…
Nuclear energy plays a strong role for net zero due to current renewable storage limitations.
The storage technology required for an entire electricity system run on renewable energy is not there yet. Therefore, on balance, we consider that nuclear energy has a strong role to play, as part of a mix of low carbon sources, …
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Government Response
The government aligns with the committee's conclusion, detailing its ambition for up to 24GW of nuclear energy by 2050 and the establishment of Great British Nuclear (GBN) to drive the UK's new nuclear programme.
Wales Office
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3
Conclusion
Not Addressed
Third Report - Nuclear energy in W…
Uncertainty and raised expectations for new nuclear build at Wylfa concern the local community.
The previous attempt to bring a new nuclear project to Wylfa by Hitachi has left scars on the local community. We are concerned that expectations are being raised again on Ynys Môn and question how long the uncertainty can continue …
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Government Response
The government outlines its long-term nuclear ambition and plans to develop a new National Policy Statement and consult on siting policy. However, it explicitly states that no decisions have been made on specific sites or technologies, which does not address the committee's concern about continued uncertainty regarding Wylfa.
Wales Office
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4
Recommendation
Rejected
Third Report - Nuclear energy in W…
Encourage Hitachi to sell Wylfa Newydd site or join a consortium for future nuclear development.
Given that the land at Wylfa Newydd is owned by Hitachi, it is unclear what the current state of play is at the site. If there is to be new nuclear at Wylfa, the issue of ownership of the land …
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Government Response
The government rejects the specific recommendation to encourage Hitachi to sell or join a consortium, stating that any decision to sell the Wylfa Newydd site is a commercial one for Hitachi. They confirm ongoing dialogue with site owners and that Great British Nuclear will work on broader access to potential sites, while also developing a new National Policy Statement for future nuclear deployment.
Wales Office
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5
Conclusion
Deferred
Third Report - Nuclear energy in W…
Wylfa is a prime site and should host the next gigawatt-scale nuclear plant.
We have heard from a wide range of industry representatives that Wylfa is one of the best sites for nuclear development and it is difficult to see how the UK Government can deliver its nuclear ambitions without taking forward a …
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Government Response
The government acknowledges the desire for a settled policy but states no decisions have been taken on which sites future projects will proceed with. It will develop a new National Policy Statement and consult later this year on future nuclear siting policy, while Great British Nuclear (GBN) will consider further large-scale projects.
Wales Office
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6
Recommendation
Accepted in Part
Third Report - Nuclear energy in W…
Pursue new gigawatt-scale nuclear plants alongside existing Small Modular Reactor policy.
While successfully developing a Small Modular Reactor (SMR) would present a huge opportunity for the UK, the technology is still in development phase. If the UK Government is serious about nuclear energy now it needs to pursue new gigawatt- scale …
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Government Response
The government acknowledges the recommendation to pursue gigawatt-scale plants alongside SMRs, stating that while Great British Nuclear (GBN) will initially focus on SMRs, it will also support the government's consideration of further large Gigawatt-scale projects.
Wales Office
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7
Recommendation
Deferred
Third Report - Nuclear energy in W…
Include Trawsfynydd site as a potential SMR host in the Nuclear National Policy Statement.
The UK Government, and Great British Nuclear, should continue to engage with Cwmni Egino on its ambition for Trawsfynydd to become the first site to host Small Modular Reactors (SMRs) in the UK. We urge the Government to include the …
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Government Response
The government states it will continue to engage with Cwmni Egino and will develop a new Nuclear National Policy Statement (NPS) to set out planning policy beyond 2025. It will consult later this year on siting policy for new nuclear developments, including SMRs, but does not explicitly commit to including Trawsfynydd at this stage.
Wales Office
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8
Conclusion
Acknowledged
Third Report - Nuclear energy in W…
Financing new nuclear projects at Wylfa faces ongoing challenges despite the RAB model.
The introduction of the Regulated Asset Base (RAB) model is welcomed as a better alternative to the Contracts for Difference (CfD) scheme for nuclear developments. However, financing new nuclear projects is not straightforward and there will still be challenges under …
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Government Response
The government acknowledges the complexities of financing nuclear projects under the RAB model and reiterates its belief that the model encourages private investment while protecting consumers. They outline existing mechanisms like value for money assessments, the Nuclear Energy (Financing) Act 2022, and Ofgem's regulatory oversight to manage risks and ensure financial commitment.
Wales Office
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9
Recommendation
Accepted
Third Report - Nuclear energy in W…
Explain mechanisms for monitoring and reporting consumer risk during Sizewell C construction.
We recognise the high cost of construction of nuclear energy plants and the large upfront investment needed to get a project to final investment decision. We hope that the Regulated Asset Base (RAB) model will help overcome these investment challenges. …
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Government Response
The government states that existing legislation (Nuclear Energy (Financing) Act 2022) and current processes, including HMT Green Book approvals and Major Project Review Group approvals, ensure consumer interests are considered and projects are monitored. Ofgem, as the economic regulator, will have full oversight and audit rights during construction.
Wales Office
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10
Conclusion
Acknowledged
Third Report - Nuclear energy in W…
Inclusion of nuclear energy in green taxonomy will unlock new private investment.
We welcome the UK Government’s announcement that nuclear energy will be included in the green taxonomy, subject to consultation. We consider that this will unlock new avenues of private investment for nuclear development and send the signals needed to the …
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Government Response
The government welcomes Hitachi's continued stewardship of the Wylfa Newydd site and has a positive relationship and dialogue with all nuclear site owners, but no decisions have been taken over which technologies future projects will proceed with, or at which sites.
Wales Office
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11
Conclusion
Acknowledged
Third Report - Nuclear energy in W…
New nuclear developments could significantly boost the North Wales regional economy and job creation.
New nuclear developments at Wylfa or Trawsfynydd could be a game-changer for the north Wales regional economy. Such projects would play an important role in the UK Government’s Levelling-Up agenda by bringing high-skilled, well-paid, long-term job opportunities to a rural …
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Government Response
The government welcomes the committee's session and recognises the potential significant impact of new nuclear developments on the North Wales economy, noting the strong local interest and support.
Wales Office
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12
Recommendation
Accepted
Third Report - Nuclear energy in W…
Collaborate with Welsh Government to develop a national nuclear skills strategy for Wales.
If the UK Government is going to realise its ambitions for nuclear energy, investment in skills is essential and serious work needs to be done on how the required skills can be developed. We call on the UK and Welsh …
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Government Response
The government states it already works closely with industry and the Welsh Government through the employer-led Nuclear Skills Strategy Group (NSSG), with aligned strategic plans to address skills challenges. It collaborates with devolved administrations for a coherent approach, acknowledging education is a devolved power.
Wales Office
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13
Conclusion
Rejected
Third Report - Nuclear energy in W…
Require developers of new nuclear projects in Wales to meet minimum local content levels.
The contribution of businesses based in Wales to current nuclear developments at Hinkley Point C and Sizewell C demonstrates that, at least in part, the skills and supply chains for such projects are available in Wales. There should be investment …
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Government Response
The government rejects placing a requirement for minimum local content, stating that local and UK content in supply chains is a commercial decision for developers. It highlights that strengthening domestic capabilities is a high priority and welcomes companies supporting local regions, citing EDF's spending at Hinkley Point C.
Wales Office
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14
Recommendation
Deferred
Third Report - Nuclear energy in W…
New nuclear development at Wylfa remains uncertain without further concrete government commitment.
While we welcome what feels like small steps in the right direction towards new nuclear at Wylfa, we do still question how much further down the path we are now to seeing a successful development than we were when Hitachi …
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Government Response
The government acknowledges the need for settled policy and will develop a new National Policy Statement and consult on future nuclear siting this year, but states no decisions have been made on which technologies or sites, including Wylfa, will proceed.
Wales Office
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15
Recommendation
Accepted
Third Report - Nuclear energy in W…
Publish a medium to long-term nuclear energy generation programme, including Wylfa and Trawsfynydd.
We welcome the UK Government’s announcement that it will deliver a programme of new nuclear projects. We recommend that the Government publishes a medium to long-term programme for nuclear energy generation. The programme must set out how it will achieve …
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Government Response
The government commits to developing a new National Policy Statement (NPS) to outline planning policy for deploying new nuclear power stations beyond 2025. As a first step, it will consult later this year on a policy for how new nuclear developments could be sited in the future, which will inform the NPS.
Wales Office
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16
Recommendation
Accepted
Third Report - Nuclear energy in W…
Mandate Great British Nuclear to plan and deliver a programme for nuclear generating sites.
We have heard strong representations from the nuclear sector for greater clarity and commitment from the UK Government on its ambitions. We put these representations to the UK Government ahead of the Spring Budget and welcome the launch of Great …
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Government Response
The government states Great British Nuclear (GBN) has been launched with funding to drive new nuclear projects. GBN's first priority is to launch a competitive process for Small Modular Reactor (SMR) technologies, with market engagement already underway and a down-selection process planned for summer, aiming for decisions by autumn. GBN will provide co-funding, work on financing and site arrangements, and support consideration of large Gigawatt-scale projects.
Wales Office
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17
Recommendation
Acknowledged
Third Report - Nuclear energy in W…
Require UK Government to explain plans for resolving the lack of utility developers in nuclear.
One of the significant missing parts of the future of nuclear development is the lack of a utility developer in the UK, other than EDF-related companies. We recommend that the UK Government explains its plans to resolve this problem and …
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Government Response
The government acknowledges the challenges faced by past nuclear projects and states that Great British Nuclear (GBN) will aim to overcome hurdles and unlock barriers in the market to enable successful project delivery. However, it does not explicitly detail concrete plans to resolve the specific problem of a lack of a utility developer.
Wales Office
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