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UK "still most attractive place" for inward EU nuclear investment, says expert


The UK is "still the most attractive place for inward investment" in new nuclear in the EU, an expert has said, as the Government hosted the signing of a commitment to new nuclear between 12 European countries.

Chris White of Pinsent Masons, the law firm behind Out-Law.com, said that document was a "timely fillip" for the nuclear agency, which "reiterated continued Government policy support for the nuclear sector" and would "ensure that the UK remains at the forefront of new nuclear in the EU".

Alongside the commitment to further collaboration on the development of new nuclear as a part of the EU's future low carbon energy mix, the UK Government also announced the allocation of £12.5 million in funding for the Jules Horowitz research reactor, which is being built in the south of France. The funding will guarantee access to the reactor for UK-based academics and the nuclear industry, and will enable collaboration with other European countries on safety and innovation, according to the Department of Energy and Climate Change.

"It's vital for our economy that we work with our European partners to make the EU a leading destination for investment in new low-carbon energy infrastructure," said UK Energy Secretary Ed Davey. "This communiqué signals a move to a stronger, better and closer working relationship between member states on nuclear energy. By working together to enable low carbon energy projects to come forward, we will go some way to reducing the EU's carbon emissions and ensuring greater energy security."

The Czech Republic is coordinating the group of member states that signed the document, and will host the next informal meeting between national energy ministers next year. Bulgaria, Finland, Hungary, Lithuania, the Netherlands, Poland, Romania, Slovakia and Spain also signed the document, alongside the UK and France.

The communiqué (1-page / 14KB PDF) emphasises nuclear safety as a priority for Europe, and makes reference to the EU's work implementing robust 'stress-tests' and reviews of reactor safety procedures. It sets out the signatories' drive to seek continuous improvements on nuclear safety, both within and beyond EU borders, and indicated their openness to discussing enhancements to the existing Nuclear Safety Directive "if there is a need to do so".

Signatory states should be given the freedom to deploy "the fullest possible range of low carbon technologies" relevant to their own needs and wishes, bearing in mind that "determination of the energy mix is a national competence", according to the document. This could include through the use of renewables, carbon capture and storage (CCS) technology and nuclear power, it said. It noted nuclear power's potential role in ensuring "security of supply" and "cost-effective" supplies.

The document also noted the need to create an "investment environment" in those countries wishing to construct new nuclear power stations, taking into account the "long term nature of nuclear infrastructure projects in the EU". The comments echo those of the UK nuclear industry, which has called for more certainty around future subsidies intended to incentivise the construction of low carbon energy infrastructure, including nuclear.

"The investment climate needs to reflect a new reality where policy support and political leadership will be vital to support project investment cases across the EU," energy law expert Chris White said.

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