Russia, China and South Korea 'should be invited to build UK nuclear plants'

Emily Gosden, Energy Editor 23 July 2016 • 7:00pm

Artist's impression of Hinkley Point C — The proposed Hinckley Point C nuclear power plant in Somerset is estimated to cost £18m Credit: EDF Energy

Russian, Chinese and South Korean nuclear companies should be offered subsidy contracts to build reactors in the UK if they are cheaper than other projects already under development, a prominent nuclear lobbyist has said.

Tim Yeo, the former chairman of the House of Commons energy select committee, said EDF’s proposed £18bn plant at Hinkley Point, which is expected to get the go-ahead this week, should be allowed to proceed, but he urged the Government to rethink its approach to future projects.

Tim Yeo in his Westminster office Credit: Geoff Pugh

The Japanese-owned Horizon and Franco-Japanese NuGen consortia are both developing plans for reactors at sites in the UK and hope to secure approval for their technologies and subsidy deals from the Government.

Mr Yeo, the MP for South Suffolk for 32 years until the 2015 general election, now chairs New Nuclear Watch Europe, a lobby group whose members include the Korean nuclear firm Kepco. He urged the Government to “urgently examine which nuclear vendors can deliver the cheapest electricity, maximise the number of UK supply chain jobs and minimise the risk of construction delays”.

Mr Yeo highlighted the “progress being made towards much cheaper nuclear generated electricity by China, Russia and Korea”, adding: “The Government should compare what all these companies, together with Horizon and NuGen, can offer.” If other offerings were significantly better, their technologies should be fast-tracked through the regulatory approval process and sites allocated to them, he said.

Mr Yeo suggested UK investors could be brought on board to operate any such plants to help counter political concerns about the technologies.

He also advocated a new funding approach under which “most of the construction costs are funded by government borrowing throughout the construction period” to help cut financing costs.

A spokesman for the new Department of Business, Energy & Industrial Strategy said: "The UK Government holds regular meetings on energy matters with its international counterparts and stakeholders."