United Kingdom - Civil Nuclear EnergyUK - Civil Nuclear Energy
Strong political support and plans for expansion mark the UK as a significant opportunity for U.S. civil nuclear exports. Prospects for services beyond new plant construction, particularly decommissioning and advanced reactor development remain positive and growing. Robust foreign competition and financing are the chief obstacles for U.S. industry. The UK has privatized power generation and liberalized its electricity market, which together make major capital investments problematic.
The UK nuclear energy sector generates 21% of the United Kingdom’s electricity, using 15 operational nuclear reactors at eight plants, providing 9.5GW capacity. Almost half of this capacity is to be retired by 2025. The first new-generation plants are expected to be on line by about 2025. No restriction on foreign equity is in place. The UK has implemented a very thorough assessment process for new reactor designs and their siting. The country also has full fuel cycle facilities from fuel manufacture and reactor operation through to reprocessing and recycling of nuclear materials followed by dismantling and decommissioning. The Nuclear Decommissioning Authority (NDA), which was established to supervise decommissioning and clean-up work, will be spending around $4.5bn over the next couple of years.
The maturity and competitiveness of the UK nuclear energy market typically make product quality and performance, delivery timescales and costs key to market acceptance. Investing time and resources in getting to know the key stakeholders and establishing solid relationship is essential for succeeding in the UK civil nuclear market.
Leading Sub-Sectors
Existing plants life extension
Existing nuclear plants include seven twin-unit AGR stations and one PWR, all owned and operated by EDF Energy, a wholly-owned subsidiary of the EDF Group (headquartered in France), one of Europe’s largest energy groups. EDF Energy generates around one fifth of the UK’s electricity and employs around 15,000 people. In the UK reactor life extensions are decided on commercial grounds by the owners in the context of 10-year safety reviews of all reactors undertaken by the Office for Nuclear Regulation (ONR), which in any case will shut down any plant considered unsafe. EDF Energy spends about $800 million per year on plant upgrades to enable ongoing operation.
New build
The UK Government has put in place a number of enablers to facilitate new nuclear build, which include a generic licensing process, a streamlined planning consent process and designation of sites. Industry plans for new nuclear capacity can be broken down as follows:
|
Site |
Type |
Capacity (MWe) |
Value |
Construction Period |
Start-up |
|
EDF Energy Hinkley Point |
EPR - 2 units (Areva) |
3240 |
25 - 27 |
2018-2026 |
2026 first unit |
|
EDF Energy Sizewell |
EPR - 2 units (Areva) |
3240 |
25 - 27 |
TBD |
TBD |
|
CGN Bradwell |
Hualong One – 2 units (CGN) |
2300 |
TBD |
TBD |
TBD |
Decommissioning
The NDA owns 19 nuclear sites across the UK and is responsible for delivering the decommissioning and clean-up of the UK’s civil nuclear legacy in a safe and cost-effective manner, and where possible to accelerate programs of work that reduce hazard. It aims to do this by introducing innovation and contractor expertise through a series of competitions.
Opportunities
New Build
EDF Energy - Hinkley Point and Sizewell
EDF Energy is proposing to build two Areva EPRs at Hinkley Point, Somerset, and two at Sizewell, Suffolk. The company was granted consent to construct and operate the first two at Hinkley Point in March 2013. EDF plans to have the first of these new reactors grid-connected by 2026. Pre-development costs there have already reached almost $1.6 billion.
EDF has 66.5% share with China General Nuclear Corporation (CGN) taking the remaining 33.5% share. CGN’s holding will be through its new company, General Nuclear International. EDF will act as architect-engineer, with 2023 as the target date for commissioning. Contractors include Areva for the reactor system, its fuel and control and instrumentation, worth £1.7 billion; Bouyges and Laing O'Rourke for civil engineering, worth over £2 billion; and Costain for cooling water intake tunnels. Alstom will provide two steam turbines and Rolls-Royce will provide some manufacturing of nuclear components. The total number of workers on the project could reach as high as 25,000, with a peak of 5600 on site at one time, and EDF estimating 900 permanent jobs when the units are operational.
Bradwell
Bradwell in Essex, close to London, is the site of a decommissioned Magnox plant, with both reactors shut down in 2002. EDF and CGN agreed to form a joint venture company to advance plans for a new plant at Bradwell and seek regulatory approval for a UK version of the Chinese-designed Hualong One reactor. CGN has 66.5% share with EDF taking the remaining 33.5%share
Small Modular Reactors
The UK Governemnt has laid out its commitment to developing and deploying advanced nuclear technologies by providing up approx $75m for R&D for advanced modular reactors and setting out a new framework to support the development and deployment of small modular reactors (SMRs).
Decommissioning
For the supply chain, decommissioning is a significant market with the NDS Nuclear Decommissioning Authority (NDA) planning to spend around $4.5bn over the next couple of years.
Web Resources
Industry Events
World Nuclear Association Symposium
September 4-6, 2019 - London
Trade Associations
Nuclear Industry Association
Government Departments
Department for Business, Energy & Industrial Strategy (BEIS)
Nuclear Decommissioning Authority
For further information, please contact:
Claudia Colombo
Commercial Specialist
U.S. Commercial Service
Tel: +44 (0)20 7891 3443
Email: Claudia.Colombo@trade.gov
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