Nuclear 'the solution not the problem'

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The government has been praised for its approach to nuclear power, as John McNamara of the Nuclear Industry Association reflects on a hectic month for the energy sector.

What were the Nuclear Industry Association's reactions to the recent publication of the white paper on electricity market reform?

This is a key aspect of policy, as far as the Nuclear Industry Association is concerned, on the timeline to delivering new nuclear power stations in the UK.

Electricity market reform represents the most far-reaching change to the electricity sector for at least two decades. Reform will have a profound impact on how electricity is produced and how it is sold in the UK. It is a big deal and aimed at building a market framework which will encourage and incentivise clean, secure and affordable generation. By incentivise, I mean incentivise the companies who will have to invest millions, sometimes billions of pounds in Britain's energy future.

The framework is now in place to concentrate on ensuring that any generators out there who want to invest in the UK and low-carbon energy, which includes nuclear, can do so.

Electricity market reform will encourage investment and will obviously be of benefit to our member companies and nuclear in the future. We want to see new nuclear power stations built and we think the government has taken a very positive step here.

Will the white paper succeed in promoting investment in a low-carbon future?

The white paper will bring clarity and greater certainty to investors.

We want pan-European companies to invest in the UK and, to do so, they need that clarity and greater certainty.

We believe very strongly in future benefits to consumers. Low-carbon is an environmental issue, but one of the key issues that has been in the news recently has been the cost of energy for consumers. Nuclear is stably priced and this is a real strength.

The Department of Energy and Climate Change released two volumes on nuclear power generation last week, as one of a number of National Policy Statements. Could you tell us a little bit about what these NPS's included and the NIA's response to them?

It has been an amazing week for the nuclear industry with this and the publication of the EMR white paper.

The idea behind the National Policy Statements is to streamline planning arrangements by establishing the national need for new energy infrastructure. This gives a clearer signpost to people of what we need to achieve when it comes to large infrastructure projects. The NPS's should encourage a diverse energy mix and should not be underestimated. They are vital to delivering key infrastructure and removing unnecessary delays.

With energy this is a big issue. Over the next 10-15 years it is estimated that we are going to lose 30 per cent of our generating capacity. If you add into this the fact that we do tend to use more and more electricity every year – about one to two per cent, according to government sources – that is not looking great for the future.

Because of this, the UK does need to get moving on building big infrastructure projects to secure our energy supplies for the future. This is the case for all technologies, not just nuclear. I think we need a step change across the energy sector.

The National Policy Statements are key in delivering that diversity of energy. We cannot delay on this issue, we must get moving now. By streamlining these arrangements this will stand us in good stead, because we do need a lot of investment in energy in the UK, and as soon as possible.

The government is supportive of the role of nuclear as a vital part of the UK's energy mix. What discussions has the NIA had with government over the last year on nuclear issues?

It is important to reiterate that the Nuclear Industry Association is a representative body for the UK nuclear industry, representing 53,000 nuclear workers and probably the same again in the extended supply chain for nuclear.

There is a huge socio-economic dimension to what we do. We are effectively a lobbying organisation on behalf of nuclear, and it is our role to put industry's case to government. Indeed, it would be strange if we did not have ongoing dialogue with government departments.

Our job is to put the case for new nuclear across to politicians, civil servants and the general public and to support the commercial interests of our members.

Taking this into consideration, we do have regular meetings with government on issues of policy relating to the energy sector. We play a vibrant role in putting the case for new nuclear in the UK.

The Nuclear Industry Association hosted the ‘New Nuclear Build' conference earlier this month. Why is new nuclear so important to the UK's energy mix?

We think nuclear is part of the solution, not part of the problem. We understand that attitudes change, but the way things have developed in the energy sector, nuclear is now very important. It is the only low-carbon way of generating electricity that can create huge amounts of power from a centralised power system. The other alternatives we have – coal and gas – are very high-carbon.

Nuclear works for the system we have – a centralised grid system – and produces massive amounts of electricity, which is low-carbon. As an island race we have always been self-sufficient in our energy: we powered an industrial revolution on our own energy sources. Because of this there is a feeling that we need to secure our own supplies of energy for the future in the UK.

Due to geographical factors it is important that we have our own indigenous sources of energy supply. Thus nuclear is important in the UK not only for reasons of low-carbon, but also security of supply.

Nuclear is also very strong in terms of reliability and stability of prices. Energy has become much more geopolitical; we have seen international disputes over energy and supplies being cut off.

Now energy is much more of an important issue. This is reflected in the media, with a greater focus on the sector than in previous years. Nuclear has certainly become higher-profile, because it is seen as being very important to the UK and vital to the overall energy mix.

Nuclear is also key if we are going to reinvigorate our manufacturing and engineering heritage in the UK. Each new nuclear power station will be like building a new Olympic Games site. That is the kind of investment and opportunity for growth that nuclear can offer.

We have to build an energy infrastructure in the UK for the future, so we should make it low-carbon, based in the UK, not reliant on imports, and involving as many companies as possible in the supply chain to create new jobs.

Nuclear represents a huge opportunity for the UK. There are not many industries that could create 30,000 new jobs. We need to create whole new supply chains – we have a supply chain for decommissioning, and one for the current operating stations. We will need new supply chains to build new power plants.

Nuclear power stations are also good for regional economies. There are no nuclear power stations in London, so any new nuclear build will be in the regions.

Because of all these reasons, nuclear is an attractive proposition.

What are your thoughts on the government's understanding of – and support for – new nuclear?

Understanding of, and support for, nuclear is not just confined to politicians. The general public is getting more educated about energy and there is a new generation of graduates who are seeking to pursue careers in energy, where there are well-paid long-term professions open to them.

Energy is becoming an important area for young people to get involved in. Six or seven years ago we were considered a 'sunset industry'; now we look like an industry that has a huge future. As a result we are getting a lot of graduates showing an interest in the energy sector.

Of course, politicians are well informed about these issues. They realise that there are no easy solutions here. Nuclear has its doubters and detractors, but so do coal and gas.

Generally, the government's understanding of nuclear is very good and it has stepped up to the mark and supported nuclear. The NPS demonstrates that this government is thinking long-term for the UK's energy future and it is very serious about nuclear being at the heart of a low-carbon future for the UK.

Has public and political opinion on UK nuclear power been adversely affected by the Fukushima disaster, or does confidence in the industry remain high?

Confidence in the industry remains very high, as demonstrated by three developers investing a huge amount of money in UK nuclear recently: EDF Energy, Horizon and NuGeneration ltd. All three want to push forward with plans for new nuclear power stations.

There are also an array of world-class British companies, such as Rolls Royce and Babcock, who want to get involved in constructing nuclear power stations.

There is clearly a huge amount of confidence in the industry, and that is unaffected by Fukushima.

In terms of public and political opinion, it is worth mentioning two things that have happened in the UK, that perhaps haven't happened in other nations.

First is political leadership. There was a very calm and measured response to Fukushima. The prime minister, leader of the opposition and Secretary of State for Energy all made strong comments very quickly after the events in Japan, saying that the UK must learn from this and leave no stone unturned in our independent analysis of what happened at Fukushima.

The chief nuclear inspector, Dr Mike Weightman, was very quickly appointed to lead as the independent regulator. His interim report has been released, saying that UK power stations are doing very well and are safety-conscious. This sends a clear message to the general public and to Westminster that the industry is stringently regulated.

Dr Weightman has now been given an international role as the lead of the overall global response to Fukushima. This shows that the UK industry is a global leader.

Secondly, it should not be forgotten that the Fukushima crisis was a result of a natural disaster of historic proportions. This was, after all, the worst earthquake that Japan had ever had, in a country used to severe earthquakes. Japan is on a major fault line for earthquakes and, clearly, quakes of that magnitude do not happen in the UK.

I think the response in this country has been calm and measured and professional. Lessons will undoubtedly be learnt and applied from Dr Weightman's full report.

There have been several polls since Fukushima which have not shown a dip in support for nuclear. I believe the public and politicians are reassured by the thorough investigations under way.