How can the UK govt fund the Hinkley c nuclear power project?
DieterHelm 12th June 2018 Dieter Helm: If the government decides to invest in further nuclear power
station projects, it should obviously try to do so at minimum cost. The
Secretary of State, Greg Clark, has suggested that one option might be to
develop a Regulated Asset Base (RAB) model. Is this concept fit for the
nuclear purposes? How does it compare with the other two options currently
under consideration – direct investment and financial guarantees, and the
Hinkley-style CfD approach. (No assumption is made here as to whether
nuclear projects should be proceeded with: it is about the best means, not
the end).
The RAB approach is in a first best world probably inferior to
the direct procurement route, but the latter is ruled out by the Treasury
imposed constraints. The RAB model is a second best, but much better than
the Hinkley style contract.
None of these approaches leads to the conclusion that nuclear is either necessary or desirable to meet the twin
objectives of security of supply and decarbonisation, though it would
contribute to both. No smart contracting and regulating framework can magic
away the deep challenges that nuclear faces, notably: the possibility that
in the next 60 years much cheaper new low carbon technologies may become
available, possibly including new nuclear ones too; the very large upfront
and sunk costs; the risk and the safety regulation; and the challenges of
getting rid of the waste. It is for society to decide whether it wants new
nuclear or not. The market cannot decide. If that decision is to proceed,
the RAB model is both plausible and preferable to the Hinkley model.
http://www.dieterhelm.co.uk/energy/energy/the-nuclear-rab-model/
Britain should clean up its fleet of decaying cold war nuclear-powered submarines
New Statesman 4th July 2018 ,Since the 1960s, the Navy has put 30 nuclear-powered submarines into
action, and 20 of these have since been retired, yet none of these 20 have
been dismantled.
HMS Dreadnought, Britain’s first ever nuclear submarine,
has been de-fuelled but is still waiting for scrapping – despite being
taken out of service in 1980. It is one of the 11 submarines retired beforethe turn of the century that are still inexplicably moored in British
ports. Given
Theresa May’s recently announced £600m boost to submarine
funding, one can’t help looking at the 20 decaying subs and wondering if
potential savings are being missed. Between 2010-16 alone, £16m was spent
on upkeep costs for subs that will never sail again. In a time when
efficiency is the watchword for the MOD, perhaps we should begin by dealing
with our fleet of Cold War relics.
https://www.newstatesman.com/politics/uk/2018/07/nuclear-submarines-britain-quietly-forgot-about-cost-16m
Smart householders don’t just switch energy providers, they go solar
Guardian 5th July 2018 , Emeritus Professor Sue Roaf: You should talk to people in the solar
industry about the future for domestic solar power rather than just relying
on “predictions”. As a non-executive director of AES Solar Ltd in Forres,
Scotland, I can tell you that our order books are healthy, despite the
government’s solarcoaster tariffs.
We are seeing real, steady growth
because, for instance, where better to spend a small part of a pension pot
than to put in a solar water heater, PV electrics and a battery system,
thus decoupling the household budget from soaring energy prices from the
grid.
Smart householders don’t just switch energy providers, they go solar,
not least those looking for a financially safer old age. That is the sort
of compelling reason why solar has a brilliant future in the UK, not a dark
one.
https://www.theguardian.com/environment/2018/jul/05/tidal-power-to-the-people
UK media ignores UK Committee on Climate Change’s report – renewables quicker and cheaper than nuclear
David Lowry’s Blog 2nd July 2018 , A key message from the UK Committee on Climate Change (CCC’s) 267-page
annual report 2018 “If new nuclear projects were not to come forward, it is likely that renewables would be able to be deployed on shorter timescales and at lower cost.”
But you would not find this very important assessment in the British media coverage. Why might this be? Perhaps because on the day before, the UK Government published its long-trailed so-called ‘Nuclear Industry Sector Deal’on which the media clearly had been well briefed in advance.
http://drdavidlowry.blogspot.com/2018/07/nuclear-threat-to-sustainable-energy.html
Botched nuclear clean-up forces UK govt to take it back into public hands
UK nuclear cleanup contract back in public hands after £122m bill
Botched tender was for the disposal of materials at 12 UK sites including Dungeness, https://www.theguardian.com/politics/2018/jul/02/uk-nuclear-cleanup-contract-back-in-public-hands-after-122m-bill Guardian, Adam Vaughan, 2 July 18.
The UK government has been forced to take a multibillion-pound nuclear cleanup contract back into public ownership, after a botched tender to the private sector landed the taxpayer with a £122m bill.
The government will take over the decommissioning of Britain’s 12 Magnox sites, including the former nuclear power stations at Dungeness in Kent and Hinkley Point in Somerset.
The move is a response to the fallout from the Nuclear Decommissioning Authority (NDA) awarding a 14-year deal to the international consortium Cavendish Fluor Partnership in 2014.
Last year the government settled with two US companies that lost out on the £6.2bn contract and brought a legal challenge over the tender process.
Ministers terminated the contract early, leading to speculation over whether it would be put out to tender again to the private sector or brought back into public hands.
David Peattie, the NDA’s chief executive, told staff he understood they had faced uncertainty in recent months, as he confirmed that the private company Magnox Ltd would become a subsidiary of the NDA on 1 September. He said the change would result in “more efficient decommissioning”.
A source close to the process said: “The reason that this has been done is to remove some of the commercial complications and the large fees paid to contractors. This will ensure more money is spent directly on cleaning up these sites.”
Unions said they wanted talks with the new management regime for assurances over pay and terms.
Peter McIntosh, the Unite union’s acting national officer for energy, said: “This decision is long overdue. The 2014 contract should not have been awarded to any organisation.”
He added: “We need to ensure the taxpayer gets value for money through the transfer of the business and it is not paid for at the expense of the workforce.”
Whitehall’s spending watchdog, the Public Accounts Committee (PAC), has strongly criticised the NDA and the Department for Business, Energy and Industrial Strategy over the handling and oversight of the nuclear cleanup contract, one of the government’s biggest ever.
A review of the failings that led to the bungled process, written by the former National Grid boss Steve Holliday, is due to be published later this year.
Bringing the Magnox work back into the public sector means that about 85% of Britain’s nuclear cleanup work is in public hands, after the NDA’s takeover of the Sellafield storage and reprocessing site in 2016.
The PAC last week announced an inquiry into the NDA’s work at Sellafield, which is forecast to be £913m over budget and faces potential delays.
Magnox Ltd looks after 10 former Magnox power stations and two nuclear research sites.
UK’s National Audit Office (NAO) fails to report on Sellafield’s highly dangerous Analytical Services Laboratory (ASL) facility
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CORE 4th July 2018 ,As a site, the full appreciation of chemical legislation, including The
Dangerous Substances and Explosive Atmospheres Regulations DSEAR, has been
inadequate’. [Sellafield Ltd Board of Investigation report on 2017
‘chemical event’ and made available to CORE in April 2018]
Many of the findings of the more recently published (20th June 2018) National Audit
Office (NAO) report will come as little surprise, once again apportioning
blame for a litany of missed milestones, mismanagement of contracts and
delays and overspend on major projects by site owner the Nuclear
Decommissioning Authority (NDA).
The report also criticises the Government’s failure to challenge and assess the NDA’s performance. Of
Sellafield’s 1400 buildings (operational and legacy), some are considered
by NAO to fall short of modern standards and, through deterioration,
‘pose a significant risk to people and the environment’.
Identified as amongst Sellafield’s top 10 highest hazards is the site’s plutonium
stock and associated management facilities, the NAO report warns
specifically of decaying plutonium canisters – a leak from which would
add to the growing list of ’intolerable risks’ posed by Sellafield as
identified by the Office for Nuclear Regulation (ONR) and the acknowledged
risks posed by the volumes of hazardous wastes and materials stored in
run-down buildings.
Yet curiously absent from the references to run down
buildings and intolerable risks – and despite making the national
headlines when the Army’s bomb squad was rushed to Sellafield late one
October weekend last year to deal with unstable chemicals – is the
site’s Analytical Services Laboratory (ASL) facility and the cocktail of
chemicals and radioactive materials it holds.
One of the oldest facilities on site (built in 1951) and located in the tight and highly controlled
confines of Sellafield’s Separation Area alongside old reprocessing plant
and the high hazard legacy ponds and silos, around 50 of ASL’s original
150 laboratories are currently operational. Described by the Office for
Nuclear Regulation (ONR) in June 2017 as a ‘relatively high risk’
facility whose laboratories hold a ‘considerable radiological
inventory’ that ‘has potentially high off-site consequences in the
event of a major accident’, it is little wonder that the Bomb Squad’s
arrival in late October 2017 to deal with ‘unstable chemicals’ and
their potential to ignite or explode; the evacuation of workers and a
100-metre cordon thrown up around ASL should have triggered major alarm
bells locally and further afield.
http://corecumbria.co.uk/briefings/chemical-chaos-and-confusion-at-sellafield-yet-another-intolerable-risk/
US-UK Mutual Defense Agreement (MDA) of 1958 underpins UK-USA ‘s joint nuclear arms race
David Lowry’s Blog 4th July 2018 , On 3 July 1958 the United States Government signed a bilateral agreement
with the UK, the effect of which has for sixty years to completely undermine the moral authority of Washington and London to preach to atomic aspirant countries that nuclear weapons are bad for national security; and civilian nuclear activities should be kept separate from any military uses.
This deal – often called the US-UK Mutual Defense Agreement (MDA) on atomic energy matters (in which the word defence is spelled with an ‘s’, even in the official UK Treaty series version, indicating its political provenance) – is the agreement that provided the underpinning framework for the subsequent Polaris and Trident nuclear weapons of mass destruction deals with US, as well as facilitating the testing of British nuclear warheads in Nevada, after the 1963 partial nuclear test ban treaty halted the atmospheric testing of nuclear explosive devices.
http://drdavidlowry.blogspot.com/2018/07/how-us-uk-mutual-defense-agreement.html
The UK’s Hitachi nuclear bailout- a classic case of crony capitalism
Morning Star 29th June 2018 , ENVIRONMENT Secretary Michael Gove promised earlier this month to crack
down on “crony capitalism.” At the same time his cabinet colleague
Energy Secretary Greg Clark was offering a £5 billion bailout to Japanese
nuclear firm Hitachi.
It looks like a classic crony capitalist deal. Gove
argued: “Crony capitalists have rigged the system in their favour and
against the rest of us.” A classic crony capitalist deal is where a big
firm uses its power and lobbying to squeeze a contract from the government
that is good for the capitalists but bad for us.
The Hitachi bailout looks like such a rigged deal. Hitachi Europe chief executive Sir Stephen
Gommersall isn’t an expert in nuclear power or engineering. He is the
former British ambassador to Japan. Gommersall was hired right out of the
Foreign Office to help open doors for Hitachi. Tim Stone sits on the board
of Horizon Nuclear Power, Hitachi’s British nuclear arm. Stone, a former
KPMG consultant, was chief adviser to the energy secretary from 2008-13,
helping shape both Labour and Tory-Lib Dem governments’ nuclear energy
policy. Before that Stone advised the government on many PFI deals,
including famously bad-value ones.
https://morningstaronline.co.uk/article/nuclear-powered-crony-capitalism
Hypocrisy relating to Nuclear Non Proliferation Treaty – US-UK Mutual Defense Agreement
David Lowry’s Blog 29th June 2018 , Article I of the NPT starts with the following commitment on Russia, the US
and UK: “Each nuclear-weapon State Party to the Treaty undertakes not to
transfer to any recipient whatsoever nuclear weapons or other nuclear
explosive devices or control over such weapons or explosive devices
directly, or indirectly”
Extraordinarily, just two days earlier in
Washington, the US hosted a bilateral meeting with the UK to celebrate the
60th anniversary – from July 3, 1958 – of a hugely significant nuclear
defence agreement (commonly called the US–UK Mutual Defense
Agreement,(MDA) with defence spelled with an ‘s’ even in the official
UK version, hinting at the origin of its drafting).
http://drdavidlowry.blogspot.com/2018/06/naked-nuclear-hypocrisy.html
Horizon Nuclear Power’s Wylfa Newydd plans formally approved.
Energy Live News 29th June 2018 ,Horizon Nuclear Power’s Wylfa Newydd plans formally approved. Four key
environmental permits will now enter the assessment stage. Horizon Nuclear
Power has had its plans to build the proposed Wylfa Newydd nuclear power
station in Wales formally approved by the Planning Inspectorate. The
Development Consent Order process now formally begins with the
pre-examination phase, which is where members of the public can become an
‘interested party’. An Examining Authority is also appointed at this
stage and interested parties will be invited to attend a preliminary
meeting. Four other key environmental permits will now also enter the
assessment stage, which will be delivered by Natural Resources Wales.
https://www.energylivenews.com/2018/06/29/horizon-nuclear-powers-wylfa-newydd-plans-formally-approved/
UK Public Accounting for Costs of the Defence Nuclear Enterprise – seriously underscrutinised
Parliament 19th June 2018 Neglected Large-Scale Value for Money Issues in Public Accounting for Costs
of the Defence Nuclear Enterprise :Written evidence a review of issues that
are of direct relevance to the core topic of the National Audit Office
(NAO) report of 2018 concerning ‘the Defence Nuclear Enterprise’
(henceforth ‘NAO Report’). The material summarized here supplements and
updates evidence published by the PAC Inquiry of October 2017. The authors
believe on grounds of many years of research at the Science Policy Research
Unit at the University of Sussex that the matters documented here raise
large-scale, long-run value for money issues of pressing national
importance, which remain seriously neglected in work to date either by the
NAO, the PAC or any other official bodies – and which are therefore
gravely under-scrutinized by Parliament or wider UK policy debates
China and UK to work together on promoting the nuclear industry to universities etc
Energy Live News 29th June 2018 , China’s largest nuclear power producer has signed a Memorandum of
Understanding (MOU) with the UK Nuclear Advanced Manufacturing Research
Centre (Nuclear AMRC) to help deepen its links with Britain’s supply
chain.
CGN, the developer of the Bradwell B project, hopes to develop its
expertise and knowledge, as well as improve commercial and academic
connections. The wide-ranging deal includes working out how UK businesses
and universities can prepare themselves to participate in the project and
how these organisations can add value to CGN’s nuclear operations in
China and elsewhere.
https://www.energylivenews.com/2018/06/29/cgn-signs-mou-to-deepen-links-with-uks-nuclear-supply-chain/
Plan to save nuclear reservoir at Winfirth from “collapse”
Dorset Echo, Richard Percival, 1 July 18
Costs of UK’s Nuclear Decommissioning Authority: call for submissions by July 10
Public Accounts Committee 29th June 2018 , A new report by the National Audit Office into the NDA found that work at
Sellafield accounted for 61% of the NDA’s total £3.3 billion expenditure
in 2017–18. 8 of NDA’s 10 most hazardous sites are at Sellafield,
whilst NAO expected current major projects at Sellafield will cost £6
billion total.
The NAO found that the NDA had made significant progress in
reducing delays and meeting significant milestones, but expects major NDA
projects to cost more than originally estimated in 2015.
Evaluating performance at Sellafield remained difficult due to the complexity and
scale of the site, but more could be done to explain progress, and to
provide assurance of major projects. The Committee will take evidence from
the Department of Business, Energy and Industrial Strategy, the Nuclear
Decommissioning Authority, and Sellafield to explore NDA and Sellafield’s
progress and performance. If you wish to submit written evidence to this
inquiry, the deadline to do so is midday on Tuesday 10 July.
https://www.parliament.uk/business/committees/committees-a-z/commons-select/public-accounts-committee/inquiries/parliament-2017/nuclear-decommissioning-authority-17-19/
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