UK Government Approves Plan to Build Two New Nuclear Power Plants

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major foreign media reported on the 20th (local time) that the UK government has approved the 'Sizewell C' plan to build two new nuclear power plants.

Two nuclear power plants with a total generation capacity of 3.2 gigawatts (GW) are planned to be constructed in Suffolk, a southeastern county. The construction cost is estimated at about 20 billion pounds based on 2015 prices, and the construction period is expected to be up to 12 years. Upon completion, it is expected to supply electricity sufficient for 6 million households for 60 years.

An independent inspection team opposed the Sizewell C plan citing long-term water supply issues and ecosystem destruction. However, the UK Department of Energy emphasized the necessity of new nuclear power plants amid energy security uncertainties caused by the Ukraine war. Local opposition movements against the nuclear power plant construction are underway in Suffolk. During the public consultation period from April to October last year, 1,000 opinion submissions were received. Opponents of the construction can raise objections over the next six weeks.

With a goal of carbon neutrality by 2050, the UK plans to increase nuclear and wind power generation to replace existing fossil fuels. Accordingly, in April, it set a plan to increase nuclear power generation capacity to 24GW by 2050 and to build eight new nuclear power plants by 2030.

As of 2020, nuclear power generation in the UK was 9GW, accounting for 20% of the country's electricity demand. However, last summer, the 1.1GW Dungeness nuclear power plant in Kent was closed seven years earlier than planned, and in January this year, the 965-megawatt (MW) Hunterston B nuclear power plant in North Ayrshire, Scotland, was shut down. At the end of this month, the 965MW Hinkley Point B nuclear power plant is scheduled to cease operations. Once Hinkley Point B stops operating, only five nuclear power plants will remain in the UK, with a generation capacity reduced to 5.9GW.

Currently, the 1.2GW Sizewell B nuclear power plant is in operation at Sizewell, and it is the only one among the remaining five plants scheduled to operate beyond 2030.

The UK government and the French Electric Utility Company (EDF) will each acquire a 20% stake in a new company to be established to oversee the Sizewell C plan. EDF is expected to be responsible for the construction and operation of the two new nuclear power plants. However, since the French government has declared full nationalization of EDF, the decision on investment in Sizewell C is likely to be made by the French government. The final decision regarding investment in Sizewell C is expected to be made next year.

Barclays is participating as an advisory firm for attracting private investment. GreenCoat Capital, the UK's largest renewable energy investment fund, is reviewing investment in the Sizewell C nuclear power plant.

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