The UK’s civil nuclear trade association has welcomed today’s announcements by the Government on reform of the electricity market that help bring clarity and greater certainty to investors in the UK’s low-carbon future.

The NIA has supported plans for a credible mechanism to encourage energy companies to invest in low-carbon generating capacity – and today’s announcements look set to provide greater clarity – and encourage investment in Britain’s energy future.

Over the next decade, all but one of our existing nuclear stations could close. The creation of an electricity market that will provide stable, predictable returns commensurate with the risks of large low carbon projects, which require larger up-front costs, is essential to investment.

Keith Parker, the NIA’s Chief Executive said the move will promote investment in the UK’s low-carbon future:

“We have consistently supported the Government’s plans to decarbonise the power sector.  This is vital to protect the UK’s future greater energy security – and to help promote a much-needed move towards low-carbon climate-friendly electricity production. Without such plans, the UK will be faced with the very real risk of becoming locked into a high carbon scenario.”

Mr. Parker welcomed the package of measures announced by the government, which allied to their other facilitative actions would help guide investors and decision-makers at a crucial time for the UK’s energy future.

“As the Secretary of State said, ‘we need to take decisive action now.’ Over the next decade the UK stands to lose up to 30% of its generating capacity when older power stations are retired. These market reforms will help build momentum to ensure we build the right capacity to meet our future needs.”

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Contact: Hannah Grimsley, Public Affairs Officer: 07894 595 717

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