The Economics of Nuclear Power in the United Kingdom

Abstract

The United Kingdom's choice of gas cooled reactor designs for its initial nuclear programmes has not, in retrospect, yielded the economic benefits that were anticipated. Nevertheless, existing Magnox and AGR plants now provide the lowest cost electricity in economic tern on the UK network (excluding low cost resource limited hydropower), and it will pay the UK to keep them running as long as possible. Nuclear Electric's Sizewell B plant, a 1200 MWe PWR, is nearing completion to time and within its sanctioned costs. Its completion, commissioning and operation are also economically rational and cheaper than other potential capacity additions to the UK power grid. The future of nuclear power is being considered by a Government Review this Autumn. If a prompt restart were decided on, it would be based on a twin repeat of the Sizewell design at the Sizewell site. Costs for the station (Sizewell C) are soundly based on existing experience and contractors' quotations. These give confidence that the plants should produce electricity at under 3p/kWh, a price at which they are projected to be competitive with coal or gas combined cycle generation plants that could be commissioned at the turn of the Century. Additionally, nuclear power offers the UK a cost effective means of reducing acid gas and carbon dioxide emissions in line with the Government's environmental targets and international commitments.