Building a low-carbon economy – the UK’s contribution to tackling climate change

Nuclear power is cost competitive with conventional fossil fuel generation. This is true even when decommissioning costs and possible fuel price increases due to increased uranium demand are allowed for. The main constraints on nuclear deployment are likely to be the feasible build rate, which is limited by the supply of technically competent nuclear specialist engineers and demanding regulatory frameworks.

The Committee recognises that there are also concerns about the long-term sustainability of nuclear waste storage and about the possible implications of an extensive global nuclear power industry for nuclear military proliferation. But if these risks are in principle acceptable – a judgment which is beyond our remit – the Committee believes that the economic case for nuclear power deployment is strong.

Analysis suggests that nuclear new build is justified on economic grounds in the first three budget periods. If the feasible pace of deployment of wind power is less than currently envisaged in the Government’s draft Renewable Energy Strategy, and if concerns about waste storage can be addressed, nuclear power deployment should be accelerated to fill this gap.

You can download the report executive summary here.