David Kidney speech - nuclear industry association
Good morning and thank you for inviting me here today. The Secretary of State is sorry he couldn’t be here today. But I’m delighted to have the opportunity to speak to you about the momentum that the UK’s nuclear renaissance is gathering.
We have set some tough targets. We have committed to cutting our emissions by 34 per cent by 2020, and up to 80 per cent by 2050.
My department has published a number of documents in the last year and half, that clearly set out how we are going to achieve those reductions. Through transport, through industries and our future jobs.
But more importantly through inspiring a change in behaviour, not just in the UK but throughout the world. That’s started to happen, through the Copenhagen talks. There is a lot more to be done however, but the will and the determination is there.
The vision
One thing I want to be clear is that we have the right vision. The Low Carbon Transition Plan sets out our ambition clearly so energy investors, businesses and the consumer know what we need, to make our reductions a reality.
By 2050 we may need to produce more electricity than we do today but must do so largely without emitting greenhouse gases.
We will need to transform our electricity system, so that electricity is generated from clean sources such as renewables, nuclear and fossil fuel plants fitted with carbon capture and storage.
An energy mix I affectionately call ‘the trinity.’
Because we have no option but to plan for a low carbon future.
We know the trinity mix is the way in which we will get to a low carbon future. But this is important too - keeping the mix diverse gives us energy security and price stability as well.
The energy sector faces some steep challenges over the coming decade. We must maintain our security of supply and make sure that the UK is shielded from volatile fuel prices and that costs to consumers are minimised.
We need a lot of low carbon energy from a variety of sources. And we will not halt the ambitions of energy companies to produce low carbon electricity through nuclear power.
Which is why we have set neither a target or cap, on the amount of nuclear power that could come forward.
Energy companies have already announced intentions to build up to 16GW of new nuclear by the end of 2025.
And the draft nuclear National Policy Statement (NPS) identifies the potential for approximately 25GW of new low carbon capacity.
This is an ambitious vision for a nation which has not built a new nuclear power station for a long time.
But high ambitions have never deterred us from reaching our goals in the past. And with the work that I know my department is doing, and the work I see you doing. That is a tangible vision.
What we have achieved
But let’s look at what we’ve achieved already. Two thirds of the world’s carbon dioxide comes from energy use, so to me, it is clear as to why our energy policy is critical to a climate change solution.
Nuclear energy already provides 15 per cent of our electricity but, as I’m sure you’re all aware, some are due to close.
So the current rate is set to drop dramatically. By 2025, all but one of our existing power stations will have closed. But these closures are an opportunity.
The existing capacity not only needs to be replaced but expanded upon. We estimate that at least £21 billion will need to be invested to make this happen.
That investment means jobs, a stronger economy and a low carbon future.
And no government has done more to make this country worth investing in. What we need now is a second industrial revolution across the UK, and embrace what a low carbon transition can do for us financially.
NPS
The National Policy Statements which Lord Hunt is taking through Parliament, are making groundbreaking progress.
I’ve already mentioned the potential for 25GW. And the NPSs are a major part of the planning reforms introduced in the Planning Act 2008.
They will guide the Infrastructure Planning Commission (IPC) considering applications for new power stations. And the process will be faster and more transparent, than the current planning regime.
The Nuclear NPS is site specific and identifies ten sites, that are considered potentially suitable for new nuclear power stations.
It also explains the our assessment for the management and disposal of radioactive waste.
We carried out a comprehensive consultation. Not forgetting the national events and public meetings, at the locations of the potentially suitable nuclear sites.
We also held informal workshops for statutory consultees and our stakeholders; and I’m pleased to say they were well attended. So many important issues have been raised that we will consider carefully and reflect in the final NPSs.
Funded Decommissioning
We have thought well into the long term and legislated to ensure developers put money aside from day one for eventual clean up and decommissioning.
Let me be clear. We take the issue of waste very seriously, and that is why it is our policy - that before consents for new nuclear power stations are granted - we will need to know that effective arrangements will exist to manage and dispose of the waste produced.
The Nuclear Liabilities Financing Assurance Board (NLFAB) will scrutinise the financing plans for the decommissioning and clean up of nuclear waste. We are determined that the taxpayer will not bear any costs for clean up.
Regulatory Reform
We are working with the recommendations made by Dr. Tim Stone on the nuclear regulatory regime.
And we have, an almost, full complement of highly trained and experienced inspectors.
We have consulted to make sure our nuclear regulatory arrangements remain world class. Our forthcoming ‘Legislative Reform Order’ will make sure there is transparency and accountability of nuclear regulation.
Nuclear Centre for Excellence
In February, the Prime Minister announced the Nuclear Centre of Excellence.
This will be a unique partnership between industry, government, academia and our international partners.
Putting the benefits of civil nuclear power aside for a moment, for many countries in the world there has always been the worry that some could try to use it as a cover to develop a weapons programme.
The centre will promote proliferation-resistant safe nuclear power around the world.
This work is crucial and I’m pleased to see that the centre will be working on this; and I look forward to seeing their progress in the coming months.
Generic Design Assessment
The Generic Design Assessment process is a high priority for us because it is vital in making nuclear new build happen. The GDA allows the Regulators to identify any potential issues early in the process where it’s easier to “design them out”. As a result, we should see shorter timescales for site licensing and authorisations.
Supply Chain
Our energy policy is about developing low carbon, secure, reliable sources of electricity generation. Nuclear power is all of these.
And it will be for energy companies and the supply chain like you to develop and build new nuclear power stations.
This government, led by the Office for Nuclear Development (OND) in my department, will see to it, that any “pinch points” in the global supply chain, do not lead to delays in new nuclear build.
We will help UK based companies to become an integral part of the domestic civil nuclear supply chain. And also giving those companies a fair chance in competing in the rapidly expanding global market for civil nuclear power.
That includes asking the Nuclear Industry Association (NIA) to establish a nuclear supply chain development programme.
And providing investment for the creation of the Nuclear Advanced Manufacturing Research Centre which will be based in Sheffield.
With an investment for the Manufacturing Advisory Service to provide tailored advice to manufacturers, on how to generate opportunities in this sector.
New build brings a massive multi million pound opportunity for the UK supply chain.
I fully welcome the work that is already well underway by energy companies like EDF and reactor vendors like Areva and Westinghouse to work with UK supply chain companies. I want to see more of this work going on in this sector.
We are well positioned to seize these opportunities, because companies operating here having been active in the development of civil nuclear power in the past.
Each new power station has the potential to offer up to 9000 jobs with an estimated cost per reactor of at least £3 billion.
And our plans to build up to 16 GW of new nuclear capacity has a market value of roughly £30billion.
Together with the OND and BIS, we will help deliver a strong, successful and profitable domestic nuclear supply chain, supplying global markets and providing high value careers for people in the UK.
Skills
So I want to come to the issue of skills. All our goals depend on acting on our ageing workforce and depleting pools of students in training.
In 2008 we launched a National Skills Academy for Nuclear and we have invested over £3 million so far. The Academy was set up jointly with employers to address the gap in skills on challenges like; fuel cycle, waste management and decommissioning.
The skills gap is closing, but the stakes are rising. And to achieve world class skills that are up to the challenge, we need to shut that skills gap in order to prepare for the transition into a low carbon society.
There are now 13 National Skills Academies in operation - two of those are in the planning phase in major areas of the economy.
As employer led, independent organisations, they have attracted significant employer investment in skills over the last three years.
And that’s the beauty behind academies. You set the agenda and you reap the benefits.
The National Skills Academy for Nuclear is led by employers from across the nuclear sector, with over 55 employer members after 20 months of operation so far. It’s success largely depends on the development of structured career progression.
And the Certificate of Nuclear Professionalism, which is now being developed to ensure graduate entrants have the right skills and competencies to work in the industry.
At Sizewell B, I understand applying the average earning to the local workforce, amounts to an injection of £64 million per annum in salaries into the local economy.
I know EDF have started to engage with local colleges to help tackle the skills shortage. And this is exactly the right approach, I want to see more of this.
It reassures me to see such commitment from employers and companies. Because let’s make no mistake that the sector’s success relies heavily on skills. But we need to see this commitment deepen. For example I want to see active support continue for the Nuclear Skills Passport and the Energy Foresight scheme.
We now need to ensure that the UK has a workforce which is, skilled, experienced and can compete in this global economy.
So they can take full advantage of the opportunities available across the sector, both now and in the future.
That is the responsibility of all of us here in the room today. No one body on their own can deliver what is required.
That is why we have committed £5 million to develop new Apprenticeship frameworks at levels three and four - four being equivalent to a university degree. And for technicians, too.
We commissioned the ‘UK Commission for Employment and Skills’ to report on the range of Apprenticeships and to identify, with Sector Skills Councils, our priorities for developing frameworks to meet future skills needs.
And in the coming month, we will be publishing our consultation on our low carbon skills strategy. It will look at the main low carbon sectors to see what we can do to fill the gaps.
But it also looks at the ‘how’, not just the ‘what’ and the ‘who’.
By that I mean ‘how’ we can embed skills across all sectors for that rapid transformation we need, to get to a low carbon economy.
It will draw out the skills needs and set out our actions. My department and BIS are leading this cross Government effort. The strategy will follow a full public consultation, which we expect to launch in the spring.
And Cogent, with our support, will shortly be releasing a new report, which looks at the skills and capability needs specifically behind nuclear new build in the UK.
The report has been developed with many of you here today. It will identify specific roles where a skills gap poses a significant risk to the new build programme – roles like high integrity welders, or project managers with sufficient nuclear experience.
Conclusion
So to conclude, two thirds of the world’s carbon dioxide come from energy use, so it is clear why our energy policy is critical to a climate change solution.
It’s an exciting time to be part of the nuclear renaissance because so much is yet to happen, that will transform our country.
New nuclear will continue to be an important part of an affordable climate change policy for the UK. We are committed to working with you and will carry on doing so.
-
Most popular related searches
Customer comments
No comments were found for David Kidney speech - nuclear industry association. Be the first to comment!