House of Commons · Westminster Hall
09 November 2021 · 5 other contributors · 6,901 words
Opened by Virginia Crosbie Con Ynys Môn
Responding minister: Greg Hands
Summarised by AI from the official record, so it can contain mistakes.
Virginia Crosbie raised concerns about nuclear power funding in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The Government should support large-scale nuclear projects through financing models such as the RAB model proposed in the Nuclear Energy (Financing) Bill. Additional public funds of £1.7 billion should also be allocated to new nuclear projects.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
The UK's current nuclear capacity is due to be retired by 2030, with increased carbon emissions and a fragile energy security. The fire at the Kent interconnector in September highlighted the fragility of our power systems when relying on other countries for production. Meeting the sixth carbon budget's requirements will require all new cars, vans, and replacement boilers to be zero carbon in operation by the early 2030s.
The hon. Member congratulated the UK Government on designating successful clusters for carbon capture, utilisation, and storage but criticised the decision as favouring Northern England over Scotland.
Discussed the failure of nuclear power station projects due to private sector investment difficulties. Emphasized that building and financing a nuclear power station is a significant commitment with no return on investment for 14 years. Noted the involvement of foreign governments in funding such as China General Nuclear Power Group's stake in Hinkley C, Sizewell C, and Bradwell. Mentioned the £1.7 billion budget allocation to support Sizwell C and potentially buy out Chinese interests. Critiqued the contract for difference arrangement used at Hinkley C and advocated for considering a government-owned model for future projects.
The hon. Member for Southampton, Test made a brief intervention noting the high costs associated with nuclear power and questioned why the Government was not prioritising cheaper alternatives like offshore wind. The hon. Member welcomed Opposition Front Benchers' in-principle support last week on Second Reading and questioned the Regional Asset Base model's advantages and challenges for nuclear projects. He also asked about negotiations with CGN regarding Sizewell C.
Responded to Virendra Sharma's apology, joking that even his own wife gets it wrong. Mr Newlands criticised the Government's funding model for nuclear power, citing Hinkley Point C as an example of a poor deal. He questioned why the Government needed to commit £1.7 billion upfront for Sizewell when they previously stated that building multiple nuclear stations would lead to cheaper costs due to competition. He also highlighted the high cost of dealing with existing and future nuclear waste and suggested alternative uses for the funds, such as upgrading homes and supporting renewable energy projects. The hon. Member criticised the UK Government for being blinkered, questioning its commitment to communities in Scotland reliant on nuclear power. He pointed out that the £1.7 billion allocated in the spending review is not specific to Sizewell C and questioned whether nuclear power is necessary for decarbonisation.
Reminded Members to wear face coverings, follow Government guidance on lateral flow tests twice weekly, maintain social distancing. I apologise for getting mixed up with the names during the debate. I asked the Minister to leave a few minutes for the hon. Member for Ynys Môn to wind up the debate.
Government Response
Greg HandsIt has been an excellent debate on the topic of Nuclear Power Funding. The Minister praised my hon. Friend Virginia Crosbie for securing this timely and important discussion, highlighting its national significance. He outlined that our net zero strategy aims to meet carbon budget 6 by reducing emissions by 78% over 1990 levels by 2035, with a focus on fully decarbonising the power sector by 2035. Nuclear energy is crucial in achieving these targets as it provides continuous reliable low-carbon electricity and acts as a foundation for our progress towards net zero emissions. The minister mentioned that more than 60,000 people are employed in the civil nuclear sector across the UK, contributing billions of pounds to the economy. The Nuclear Energy (Financing) Bill is highlighted as allowing more optionality and flexibility in financing new projects, including British pension funds and institutional investors. The minister addressed concerns about Sizewell C funding and reaffirmed that it does not specifically relate to this project alone but is part of a broader strategy to finance large-scale nuclear projects. He also noted the government's commitment to approving at least one large-scale nuclear project during this Parliament, supporting new technologies like small modular reactors (SMRs). The minister emphasised the economic and environmental benefits of new nuclear projects, stating they will support long-term economic security and national prosperity while reducing CO2 emissions by millions of tonnes. He thanked Virginia Crosbie for her contribution and expressed excitement about unlocking opportunities in Wales through this legislative process.