MPs urge government to back Wales’ nuclear ambitions
MPs have urged the government to push ahead with building a new nuclear power plant in Wylfa, North Wales.
The Welsh Affairs Committee – a Westminster panel of MPs – has warned that major obstacles around funding and planning remain before the site could be home to a gigawatt-scale nuclear power station.
It argued there was a lack of concrete commitments from ministers on the future of nuclear energy in Wales, including the site at Wylfa.
This is despite positive policy signals such as funding for Sizewell C and the nuclear financing bill which unlocks public funds for projects.
In its report on the nuclear energy sector, the committee has raised concerns that the regulated asset base model – which is expected to be used for Sizewell C – puts too much liability on the taxpayer.
The RAB model relies on public funds to construct the power plant before private investors are intended to come on board – and has been used for the Thames Tideway Tunnel.
While it considers RAB a preferable option to contracts for difference, it will closely monitor Sizewell C’s development before making a judgement on the funding method.
Meanwhile, the collapse of the proposed Hitachi-led project in 2019 has meant there are issues over ownership of the land.
At present, Hitachi owns the site and the committee has called on the government to encourage Hitachi to sell it or join other developers to enable future development to proceed.
The government is targeting a vast ramp-up in nuclear energy generation over the next three decades, to meet a quarter of the country’s energy needs.
Land ownership and financing
Wylfa has been widely considered the next site of interest after Hinkley Point C and Sizewell C.
Over the course of the committee’s inquiry, the interim-chair of Great British Nuclear Simon Bowen said he considered Wylfa to be an ideal site for a new nuclear power station.
Welsh Affairs Committee Chair, Stephen Crabb MP, said: “Over the last couple of decades Wylfa has been in a state of limbo. Local people have been enthusiastic about the potential investment to the area only to have been left disappointed when Hitachi pulled out of the Wylfa Newydd project.”
“We cannot allow the same to happen again. Despite the positive policy changes and stronger rhetoric from ministers about nuclear, a new power station at Wylfa is still far from certain. Important obstacles remain on financing which is limiting private sector investment, and on the issue of land ownership which is preventing a new developer coming in. We must see concrete action on addressing these issues before the next general election, otherwise the uncertainty about the project will increase.
CityAM has approached the government for comment.