The energy companies RWE and E.On pulled out of a project for two new nuclear power plants, with implications for the future of energy provision in the UK.
Prof Andrew Sherry FREng, Director of the Dalton Nuclear Institute at the University of Manchester, said:
“The news that Horizon’s shareholders, RWE power and E.ON Horizon, have decided not to proceed with developing nuclear power in the UK is clearly a significant disappointment, but it doesn’t change the fundamental drivers to maintain a significant nuclear component in the UK energy mix: low carbon, secure, and cost effective energy. Horizon have indicated that their decision is strategic, and the projects at Wylfa and Oldbury remain excellent development opportunities. Other plans for new nuclear build with EDF/Centrica and Nugen remain on track and we await with interest to see whether other interested parties step up with investment to carry on the Horizon projects.”
Prof Dame Sue Ion, a Fellow of the Royal Academy of Engineering, said:
“Not only is new nuclear build stalling, but investment is stalling generally across the energy industry, including the major investment needed for offshore wind projects. Large amounts of capital require large amounts of cash and the recession, especially in Europe, is making access to cash difficult. Companies are very risk averse and worry about the continuity of energy policy and particularly for renewables the longevity of subsidies.
“This decision will bring home to government how challenging it is when investment decisions are left entirely to the market. We are now in a position where investment by UK utilities in the UK is being affected by decisions taken overseas.
“The government is right to be concerned because the whole situation sends signals of doubt and uncertainty into the engineering and manufacturing supply chain which really had begun to believe in a resurgent nuclear sector in the UK. Thousands of UK top engineering and manufacturing jobs depend upon the currently foreseen replacement fleet materialising. Otherwise global supply chain hubs will be placed in other countries in Europe where pro nuclear policy is better matched by actual investment and real projects.
“It is important therefore that the apparent intent of EoN and RWE to seek new ownership for HNP and with it the key sites at Wylfa and Oldbury is encouraged. Their decision not to take forward new nuclear in the UK is to do with issues they face particularly in their home market in Germany – and not that the nuclear projects themselves were problematic.”