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German firms abandon UK nuclear plans

German energy firms RWE Npower and E.On have announced they will not go ahead with proposals to develop new nuclear power plants in the UK.

In a dent to the government’s plans to attract nuclear investment, the two firms will not develop facilities in Gloucestershire and Wales.

The ‘Horizon’ joint venture has been hampered by a number of factors, including capital for major projects remaining at a premium, long lead times and payback periods, and the effect of the accelerated nuclear phase out in Germany, leading to divestments, capital increase and leaner capital expenditure by RWE.

Germany was prompted to close its nuclear power stations by 2022, following the disaster at Japan’s Fukushima nuclear facility.

Senior staff from RWE, E.ON and Horizon informed Horizon staff of the decision at its headquarters near Gloucester this morning.

RWE npower CEO, Volker Beckers, said: “We remain convinced that Horizon’s development projects represent excellent sites for new nuclear power stations in the UK, and we would like to express our sincere thanks to the Horizon employees for their hard work in bringing the projects to this stage of development.

“We would also like to thank the communities around Wylfa and Oldbury, the business partners we have worked with during development, and everyone who has shown support for our development work.”

“It is because of the strength of support for our development work, particularly on the Island of Anglesey, that we continue to believe that nuclear power has an important role to play in the UK’s future energy mix.

“We are therefore looking to ensure that work on development, including grid connection, can be taken up quickly by other potential investors.”

“RWE npower has more than 12,000 employees and has invested more than three times its profits in the UK over recent years. We remain committed to the need for significant investment in low carbon energy technologies.

“RWE has invested over £1.2 billion into new renewable energy in Britain over the last three years, and more than £1.6 billion into new, highly efficient, flexible gas-fired power stations over the same period. In the same period, RWE has been one of the largest investor in Wales in any sector.”

Energy Minister Charles Hendry said: “EON and RWE’s withdrawal is clearly very disappointing, but the partners have clearly explained that this decision was based on pressures elsewhere in their businesses and not any doubts about the role of nuclear in UK’s energy future.

“The UK’s new nuclear programme is far more than one consortia and there remains considerable interest.

“Plans from EDF/Centrica and Nugen are on track and Horizon’s sites offer new players an excellent ready-made opportunity to enter the market.”

Simon Walker, Director General of the Institute of Directors, also commented: “This is bad news for the future of Britain’s energy supply.

“We need more power generation, and we need it from a range of sources including nuclear. Without enough reliable and affordable power to underpin our economy,businesses will find it harder to deliver growth.

“This decision is disappointing, and the Government needs a far better energy strategy to ensure the lights stay on and the factories keep running.”

This was posted in Bdaily's Members' News section by Tom Keighley .