NIA - The Nuclear Industry Association - Energy moves to top of agenda

Energy moves to top of agenda

May finally saw the release of the Government’s Energy White Paper and consultation on nuclear power by then Secretary of State for Trade and Industry, Alistair Darling.

The consultation on nuclear follows Greenpeace’s judicial review victory over the Energy Review in February and contains all the background research done for the original review. The consultation will include deliberative consultation exercises with the public. It will be open until 10 October and the Government expects to make a decision by the end of the year.

The White Paper highlights the risk of a looming energy gap being filled with imported fossil fuels, and the resultant implications for carbon emissions and security of supply. For these reasons it makes nuclear, along with strengthened support for renewables a central pillar of the paper, allowing the UK to retain a diverse energy mix.

In addition the government has launched several other consultations including the justification process for new reactors under the Euratom Treaty, strategic siting assessments for new reactors, reform of the renewables obligation system, reform of the gas act, and carbon reduction targets for large businesses.
There are also many background documents including a report from Jackson Consulting on the suitability of existing sites for new build which can be found here: http://www.gnn.gov.uk/imagelibrary/detail.asp?MediaDetailsID=203181

Since the launch of the White Paper, new Prime Minister Gordon Brown has confirmed his commitment to new nuclear power subject to the outcome of this consultation. He has also carried out a reshuffle which has seen the DTI re-branded as the Department for Business, Enterprise and Regulatory Reform (BERR) and John Hutton has been brought in as Secretary of State, with Malcolm Wicks returning as Energy Minister. Meanwhile it was all change over at the Department of Environment Food and Rural Affairs where Hilary Benn replaces David Miliband, who has been promoted to Foreign Secretary. Phil Woolas also replaces Ian Pearson as Environment Minister with responsibility for Nuclear Waste.

Almost as important to the industry as the Energy White Paper is the Planning White Paper which was also published in May. The document sets out the Government’s intentions right across the planning sphere but in particular seeks to streamline the process for major infrastructure projects such as nuclear.
Among its provisions the Planning White Paper will bring in a new system for dealing with major infrastructure decisions (transport, water, waste and energy) with community consultation locked into every stage of the process. This new system will replace over 8 different planning regimes and could save over £1 billion within 10 years - it includes:

n A new national policy framework set by Ministers and parliament setting out how to meet the country’s key infrastructure needs for the next 10-25 years, bringing it together under one legal framework. This will be subject to public consultation.

n A new stronger but clearer inquiry system with more expertise. This will be led by an independent commission consisting of leading experts from key sectors - including planners, lawyers, environmentalists and community experts - who will take decisions on individual projects. This will include new “open floor” debates where residents can have their say rather than having to go before a court-room style inquiry hearing.

n A new legal requirement on developers to consult with the public and key parties such as environmental groups and heritage experts.

n Major expansion of free access to advice from planning professionals - so not just those who can afford to pay can make their voices heard.

The nuclear consultation is available at http://www.berr.gov.uk/consultations/page39704.html for which the deadline is 10 October and the planning one at http://www.communities.gov.uk/index.asp?id=1510503 for which the deadline for submissions is 17 August.

NIA will be responding to all these consultations. Contact Simon James, Head of Public Affairs on This email address is being protected from spam bots, you need Javascript enabled to view it for more information.

Summary of the White Paper:

A requirement for new meters to come with a real-time display from 2008 and a short term offer of free displays from energy suppliers for households to 2010. In addition, the Government is encouraging the introduction of smart meters, also with displays, in the household sector and for small firms and expects everyone to have a smart meter within 10 years, whilst requiring smart meters for all but the smallest of businesses in the next five years.

A consultation setting out how the energy efficiency of consumer electronics will need to improve is published.
A consultation to double energy suppliers’ current obligation to deliver energy efficiency measures to customers through a new ‘Carbon Emission Reduction Target’.

A cap and trade ‘Carbon Reduction Commitment’ for large commercial organisations such as banks, supermarkets and large local authorities.

A ‘Distributed Generation’ Report is published including simplification of energy market and licensing arrangements for localised energy by the end of 2008 and clearer export tariffs from all six major energy suppliers for microgenerators to sell excess electricity.

Legislation to band the Renewables Obligation to benefit offshore wind, wave, tidal and other emerging technologies. The cap on the amount of co-firing generation qualifying for support will be removed.
Publication of a Biomass Strategy as well as a response to ‘ Creating Value from Renewable Materials’ – a 2 year progress report on the Strategy for Non – Food Crops and Uses.

Detail on the competition announced in the Budget to build the world’s first end-to-end Carbon Capture and Storage plant, which will deliver at least 300MW capacity, 90% CO2 saving, and be up and running between 2011 and 2014.

Legislation to allow the storage of natural gas under the seabed and unloading of Liquefied Natural Gas at sea.
A three month deadline within which BERR will make consent decisions on large scale energy projects, pending more radical reforms set out in the Planning White Paper.

A new energy market information and analysis service from this autumn.

A Low Carbon Transport Innovation Strategy is published backed by funding of £20m for public procurement of low carbon vehicles, an up to £30m R&D ‘Innovation Platform’ and £5m additional funding for the Energy Technologies Institute.

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