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The government has indicated that it will approve nuclear new build when it releases the outcome of its long-awaited energy review, expected this Tuesday.
The contracts could be worth up to £20 billion, depending on how many power stations are built. Sources say between six and ten new atomic power plants could be built, at a cost of £2 billion each.
Working together in a consortium is one option considered by the energy-generation firms. But sources say they see two main consortiums forming, one French-backed and one around German firms. Germany’s RWE is also understood to be interested in taking part. The firms are awaiting the energy review before they decide how, or whether, to invest in the new power plants.
Mark Spelman, energy expert at Accenture, the consulting group, said: “What matters is the level of detail in the energy review. We need specifics such as nuclear’s anticipated share in the energy mix.”
The review was launched to deal with an expected shortage of power as old stations go out of service. It is also intended to help the UK meet its carbon- emissions targets, and is expected to focus on renewable energy as well as nuclear.
Separately, the independence of Nirex, the body responsible for setting standards in handling radioactive waste, is under threat, raising fears over how Britain’s nuclear legacy will be tackled.
David Miliband, secretary of state for the environment, is understood to have recommended last month that Nirex’s responsibilities be transferred to the Nuclear Decommissioning Authority, which is in charge of awarding contracts on nuclear decommissioning.
One minister said: “This is a disastrous mistake politically. The decision has been made in secret.” More than 50 MPs from all parties have signed a motion calling for Nirex’s role to be protected. The final decision rests with Downing Street.
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