Planning laws for nuclear projects need to be reformed urgently otherwise the Government will miss its net-zero target, according to the head of an influential group of Labour MPs.
The Government is committed to ensuring 100 per cent of its energy comes from so-called clean sources by 2030 and nuclear is seen as an essential part of the strategy.
However, there are fears plans for the roll-out of the UK’s first “mini”-nuclear reactors could be hampered by the same planning delays that have blighted large-scale infrastructure projects.
Josh MacAlister, the newly elected MP for Whitehaven and Workington and co-chair of the Labour Growth Group, said deadlines have already been missed on the rollout of key Small Modular Reactors (SMRs), which are planned to be operational from the early 2030s.
He told The i Paper: “Energy experts, the Climate Change Committee and the Secretary of State have all been clear that we can’t meet our clean-energy targets without nuclear. Fourteen years of Conservative government resulted in zero new nuclear power stations completed. That has left us in a situation that requires urgent attention.
“Approving new nuclear projects is essential but this must also come with reform to the planning system, which has been holding projects up, putting off investment and leading to many potential projects falling through.”
More than 50 Labour MPs are part of the Labour Growth Group, including Cabinet Office parliamentary private secretary and former director of the Resolution Foundation Torsten Bell, former director of Labour Together Josh Simons and former Chief Secretary to the Treasury under the last Labour government, Liam Byrne.
The group are thought to see SMRs as a “potential success story that has been held back” by the UK’s planning laws and are eager to see progress on the project in the new year.
The UK’s SMR programme was supposed to utilise new technology to allow nuclear reactors to be built in factories and then transported to sites saving a fortune on costs.
However, planning restrictions mean nuclear power plants can currently only be built on eight named sites.
The scheme was subject to regular delays under the previous Government, which had considered loosening the rules, and has now been subject to another setback.
During the Budget, it was quietly announced that the winners of the competition to build SMRs – with shortlisted companies including Rolls-Royce and GE Hitachi – would not be announced until spring, rather than late in 2024.
Labour leader Sir Keir Starmer (right) meeting apprentices during a visit to Hinkley Point nuclear power station in Somerset (Photo: Ben Birchall/PA Wire)The delays are thought to be concerning key contractors, who were enthused by the UK’s initial desire for speed, which has waned since the plans were announced as part of the launch of Great British Nuclear, the public body set up to advance nuclear projects.
Rolls-Royce is one of multiple firms that have become openly frustrated at British progress in recent months, with similar plans being run by the company in Czechia being supported far quicker than in the UK.
Industry sources have overall been optimistic about nuclear hopes since Labour have taken power, following the extension to four existing nuclear reactors since July.
However, concerns remain as a number of projects lack final approval.
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Read MoreTom Greatrex, chief executive of the Nuclear Industry Association said that despite some progress, there was a long way to go.
He said: “Whilst we have seen good progress at Hinkley Point C and extensions given to the four AGR [advanced-cool gas reactor]stations, this next period up to the Spending Review is one the most critical in our 70 year history as we await final decisions on Sizewell C and the Small Modular Reactor competition”
Sources working on the development of nuclear sites have raised eyebrows at the lack of news on financing since Labour announced plans to court private financers for major Government infrastructure projects.
Successive governments have targeted sovereign wealth investment from the gulf to no avail, with Sir Keir Starmer flying out to the Emirates in December as part of a wider push.
Potential financing arrangements have been treated with scepticism by investors, partially due to the UK’s poor track record of delivering major infrastructure projects compared to other Western nations.
One industry source said: “If you look at the UK’s track record on the projects, it’s chequered at best. If you’re a major foreign investor, do you want to risk delays, overspends or a change in the political situation that means things get undermined? The existing set up for private-public agreements on nuclear are already seen as risky, so it’s a tough ask.”
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