The Nuclear Dilemma

In October 2010 the UK Government gave the green light to eight new nuclear reactors. It would see the UK push forward with the most ambitious fleet of new nuclear power stations in Europe. On 11 March 2011, the Fukushima Daiichi Nuclear Power Plant disaster occurred and nuclear power plant investment in the UK was put on hold. It was not until September 2016 the Government approved the construction of Hinkley C Power Station, with work actually commencing in March 2017 and scheduled to finish in 2025.Originally estimated to cost £26bn latest cost estimates are £36bn with forecast completion dates ranging from 2027 to 2036.The level of investment in these large power stations has led many to consider Small Modular Reactors (SMRs). Typically generating 300MW compared to the 1600 MW of the Hinkley C units they can be largely factory built, require lower investment and as the numbers produced are much larger manufacturing time and costs would benefit from the "learning curve” associated with building multiple units.To meet its carbon commitment the UK Government is now considering around seven SMR designs and is predicted to reduce this to two or three by the end of 2023. The ambition was to have SMRs operational by 2030 but latest announcements suggest a final investment decision by 2030 with construction starting around 2035. In the meantime renewable energy is becoming more attractive and new SMR designs are starting to appear and different power generation scenarios are being considered.As time slips by the dilemma facing the Government is: Should it invest in nuclear power? should it invest in SMRs? and if so... When should it make the investment? As time passes the decision becomes ever more complex.