Report  |  2 April 2012

New nuclear in the UK? It all depends on the government's policies

By Alex Forbes

Nowhere in the OECD region has a government shown more enthusiasm for new nuclear power stations than in the United Kingdom. The government's efforts to smooth the path for new projects have so far been impressively successful, with key milestones being reached with only a few months here and there of delay. For now, the proposed new projects - amounting to over 16 GW - have built up a head of steam, despite last week's news that big German investors Eon and RWE have decided to pull out. But even the front-runner projects face the uncertainty of not knowing how much they will be paid for their output. Much will depend on how the government chooses to implement its ongoing electricity market reforms.

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