Tuesday, July 19, 2011

Isra-Mart srl: UK's nuclear renaissance edges towards reality as policy statements gain approval

www.isra-mart.com

The UK's long-standing plans to deliver a new fleet of nuclear reactors took a major step forward last night, after the House of Commons approved a package of energy National Policy Statements (NPS) designed to inform planning decisions on large nuclear, fossil fuel and renewable projects.

Nuclear developers had been waiting for the statements to pass through parliament before proceeding with planning applications for new reactors. Energy giant EDF is now expected to move forward with its first planning application later this year with a view to delivering the UK's first new nuclear reactor in decades by 2018.

As expected, the nuclear NPS confirms eight sites that have been deemed suitable for the development of new nuclear plants by 2025. They are Bradwell in Essex, Hartlepool, Heysham in Lancashire, Hinkley Point in Somerset, Oldbury in South Gloucestershire, Sellafield in Cumbria, Sizewell in Suffolk, and Wylfa on the Isle of Anglesey.

Both the Independent Planning Commission (IPC) and the new ministerial planning body that is expected to replace the IPC will be required to use the NPSs to inform future planning decisions.

The move is expected to make it significantly easier for new nuclear power plants to gain planning approval, although a number of green groups are expected to mount a high-profile public and legal campaign against any new nuclear facilities.

In addition, the government is likely to face on-going pressure to beef up safety requirements in the wake of the Fukushima disaster earlier this year.

On top of the nuclear NPS, parliament also approved statements for fossil fuel and renewables projects designed to streamline planning processes for large-scale infrastructure projects.

Ministers were at pains to stress that the statements will have a significant impact on the energy sector beyond the media focus on new nuclear plants, arguing that they will help ensure the looming energy gap is bridged at the same time as meeting carbon and renewable energy targets.

"Far too often the planning system has resulted in delay and indecision over major energy projects and things simply not getting built," said energy minister Charles Hendry in a statement. "We are removing uncertainty to give industry the confidence to invest in much needed new energy infrastructure in this country."

A spokesman for the Department of Energy and Climate Change (DECC) said that in clearly setting out the government's energy policy, the statements would make it easier for developers to undertake effective pre-consultation work before submitting a planning application to the IPC or the body that replaces it.

"It should reduce the to-ing and fro-ing between developers and the IPC and help streamline the process," he explained.

He also said that the approval of the NPS should provide low-carbon investors with a greater level of confidence, as the statements make clear that planning decisions should be informed by the goal of deploying 33GW of new renewable energy capacity by 2025.

Some renewables groups have downplayed the significance of the NPS as the IPC will only make planning decisions for renewable energy projects with over 50MW of capacity. The vast majority of onshore wind farms and other renewable projects that have struggled to gain planning approval are below this threshold and will therefore continue to face local planning processes.

However, the statements will inform planning decisions for larger offshore wind farms and some large-scale biomass or carbon capture and storage projects, as well as new nuclear facilities.