United Kingdom — Keynote Address

J. Loughhead Chief Scientific Advisor

UK Department for Business, Energy and Industrial Strategy London, United Kingdom

Excellencies, ladies and gentlemen.

It is with great pleasure that I address the conference today at such a critical time for mitigating climate change.

There is no doubt that climate change is one of the most profound global challenges we face.

The decisions we make in the next few years will affect the future of our planet for generations to come. The UK has a proud tradition of climate leadership but recognizes that a step change in action is needed in our own country and across the world. That is why this conference is so timely, and we thank the IAEA for convening it.

On the 27th June, the UK government became the first major economy to set a legally binding target to achieve net zero greenhouse gas emissions by 2050.

We have made Clean Growth one of four ‘Grand Challenges’ to make the UK a world leader in emissions reductions whilst being a hub for jobs, investment and exports in new low-carbon sectors. We will continue to build on our strengths in areas such as nuclear innovation, offshore wind, smart systems, battery storage and green finance but in parallel drive efficiency of energy use and to ensure more sustainable consumption.

Our commitment to clean growth involves supporting the attainment of the UN Sustainable Development Goals, including those related to climate change and other environmental pressures. The UK continues to increase spending on climate related funds and innovation funds, to help low and middle-income countries respond to the challenges and opportunities of climate change.

That is why the UK, in partnership with Italy, has bid to host COP26 in 2020. COP26 will be a great opportunity for the UK, and us all, to showcase our efforts to tackle greenhouse gas emissions, to meet UNFCCC targets and rise to the challenge of climate change.

We believe that nuclear has an important role to play in decarbonizing energy systems.

Electricity demand in the UK is likely to grow significantly by 2050 as other sectors of the economy, such as transport and heat, are electrified. To meet increasing electricity demand whilst meeting our ambitious net-zero target, there will need to be a substantial increase in low-carbon generation.

The technologies currently available to provide large-scale constantly generating, low-carbon power by 2050 are nuclear and gas with carbon capture, usage and storage (CCUS). Therefore, a significant increase in their capacity, alongside renewables, is likely to be required to meet increasing demand as well as our climate targets, if nuclear can reduce its costs. Nuclear must ensure that it delivers value for money for consumers in a competitive energy market.

Economics is a growing issue for nuclear energy with significant competition following the latest UK auction for offshore wind which cleared at £39.65 MW/h, a 30% reduction since 2017. To address competitiveness, we have taken an innovative partnership approach with the UK civil nuclear sector, which we call our Nuclear Sector Deal. The Deal drives joint action alongside industry to meet agreed objectives, including cost reductions of 30% for new build projects and 20% for decommissioning.

Nuclear is an important part of the UK’s energy mix: it provides around 40% of the UK’s low carbon electricity. Our first new build project in a generation at Hinkley Point C will provide 7% of the UK’s total electricity requirements, powering nearly 6 million homes with low carbon energy. In order to address the issue of cost, we are currently looking at innovative new funding models for new build projects. Therefore, we are currently considering the Regulated Asset Base (RAB) model as a sustainable funding mechanism which aims to attract private finance and reduce the cost of capital for nuclear new build projects. We are currently engaging with a range of stakeholders on this proposal.

Alongside tackling the economic challenges of currently available nuclear reactors, the sector is rapidly advancing with innovative small and advanced modular reactors. These are another opportunity for nuclear to help meet our net-zero targets which the UK welcomes. Therefore, we are actively supporting SMR and AMR innovation through the UK’s Nuclear Innovation Programme and wider policy framework.

This support includes:

 Up to £44 million for an R&D competition for next generation AMRs.

 Up to £12 million to help our nuclear regulators build capability to take future licensing decisions on small and advanced modular reactors, recognizing that there may be different licensing considerations to current reactors.

 Up to £20 million for an advanced manufacturing and construction programme to help innovate and demonstrate manufacturing techniques for modular nuclear.

 We are also considering an up to £18 million award to support further design and development of a UK SMR by a consortium led by Rolls-Royce.

Each of these points underline the UK’s commitment to supporting the opportunity of small and advanced reactor innovation as a way of generating low carbon energy and reaching our net-zero target.

We are keen to seek out the best and most talented minds to tackle climate change. Our Equality, Diversity and Inclusion Strategy is proactively developing new pipelines to attract and retain a diverse workforce through supporting local apprenticeship schemes and sharing of best practice and tools across the nuclear sector.

Mindful of our responsibilities to future generations, we have also launched consent-based processes to identify a location for a geological disposal facility for our higher activity radioactive waste and we plan to consult stakeholders on a new radioactive waste and decommissioning policy next year.

In the IAEA context, the IAEA has an important role in improving the understanding of the potential contribution of nuclear power by providing interested Member States with guidance and assistance for deploying safe, secure and safeguarded nuclear technology and in formulating national energy strategies and policies. The UK is a strong supporter of the IAEA and its invaluable work in this regard.

The UK also supports the Technical Cooperation Fund and nuclear applications laboratories, which play an important role in contributing to climate related science and technology development. These spin-offs are a good thing and support the social capital of nuclear.

To end, we are delighted to host a side event in the margins of this important conference entitled

‘Advanced Nuclear Innovation and Climate Change: UK Perspectives’ taking place Thursday at 17:30 in M2, followed by a reception. This event will be a chance for attendees to learn more about the UK’s position on advanced nuclear innovation from policy and regulatory perspectives as well as the potential of nuclear co-generation. I would like to invite your participation for what promises to be a stimulating panel discussion.

Thank you.

2.4.12. United States of America — Keynote Address