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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
I think they call that my full Sunday title, Sir John. I thank the hon. Member for Ynys Môn (Llinos Medi) for securing this debate and also, as I said to her in the House last week, for her passion on this issue and energy projects more generally. We have debated a number of them in this Chamber over the past few months, and I am grateful for the way in which she does that.
This is a very important debate. I want to raise a few general points about the importance that the Government place on nuclear power, and then I will come to some specific points on Wylfa. First, new nuclear will play a critical role in this country’s energy mix by delivering the clean and secure home-grown energy that the country needs. As the hon. Lady said, it is increasingly clear that demand for electricity in this country is only set to increase significantly. Our estimate is that it could double by 2050, but given the current growth rate of things like AI, it is likely to be quite a conservative estimate. Nuclear will play a critical role in that energy mix.
As we adapt to a more uncertain world, as we continue to recover from the global pandemic and with all our future growth plans, nuclear’s energy security advantages make it essential. We have been clear that the role of our clean power mission is to push gas off the system, and nuclear will play a critical role alongside renewables. This is not a renewables-only drive; this is about renewables alongside nuclear. As the hon. Lady outlined, Wylfa has huge potential in that energy mix, and we are not overlooking it for a second.
I will come back to that point in more detail in a moment, but first I want to say something more generally about Wales. The hon. Lady gave us a useful history of nuclear power. Since the 1950s, Wales has played an important role in delivering nuclear power for the whole country. As she rightly outlined, the expertise and skills in Wales are extraordinary, and there is huge potential to build on those skills.
The tens of thousands of jobs that will be created by our new nuclear projects could be spread across the UK, which is why I think the opposition to new nuclear in some quarters—for example, from the SNP in Scotland—is so short-sighted. This is an economic opportunity as well as a key energy driver. Our forthcoming industrial strategy White Paper will say more about how we will support the wider energy industry in Wales and across the country.
The hon. Lady outlined the historical role of Wylfa, and she referenced decisions going back to the year after I was born, which brings it into stark contrast. In its 44 years of operation, the former nuclear power station at Wylfa generated enough safe, low-carbon and home-grown electricity to power 2 million homes a year, as well as supporting hundreds of good jobs in local communities. I pay tribute to all those who worked in the former plant for their expertise in running an incredibly safe operation over 40 years.
Liz Saville Roberts
I would be grateful if the Minister could provide an assurance on continuous decommissioning at both Trawsfynydd and Wylfa. At Trawsfynydd, decommissioning is currently providing 276 very well-paid jobs. Trawsfynydd is the United Kingdom’s “lead and learn” site and could well be the first fully decommissioned nuclear site in Europe. However, we need an assurance that decommissioning will be continuous and that there will be sufficient funding, beyond this year and into the future, to ensure effective decommissioning, which will also give the public confidence in nuclear power into the future.
Michael Shanks
I thank the right hon. Lady for that point. Trawsfynydd—I think that is the correct pronunciation —is potentially also an important site for future nuclear, but she is right to highlight decommissioning. I am sure the Minister for nuclear, my noble Friend Lord Hunt, will be happy to discuss this in more detail, but clearly decommissioning is important. It creates a lot of jobs and skills, as well as developing future economic opportunities—it might be new nuclear, but it might also be other things. I am happy to volunteer my noble Friend to speak to the right hon. Lady about this, but it is certainly something we take very seriously. With something like nuclear power, we also have a responsibility to decommission it responsibly, which is part of the story of nuclear, alongside the years of generating.
Mr Alex Barros-Curtis (Cardiff West) (Lab)
Last year’s Welsh Labour manifesto said that our two Labour Governments in Wales would explore the opportunities for new nuclear at Wylfa. Could my hon. Friend elaborate a little on that, bearing in mind the extensive history provided by the hon. Member for Ynys Môn (Llinos Medi) gave? I was listening carefully, and it was excellent to listen to. We have, of course, been in power for only 10 months, after 14 years of failure. Will my hon. Friend expand a little more on that point, further to the commitment we made to the electorate in Wales last year?
Michael Shanks
I thank my hon. Friend, not least because that is the very next part of my speech, so it is excellent timing. The history of Wylfa is important to our energy story, but so is the future. The potential of the site has long been recognised. I recognise the point made by the hon. Member for Ynys Môn that, after several years of hard work, the withdrawal in 2020 of Horizon’s plans to develop a new large-scale nuclear power station at the site was a setback for the whole country, but particularly for the local community. She rightly outlined the role that such projects can play in developing skills and good, very well-paid jobs, which often have salaries considerably above the average. It is really important that we move those projects forward.
I will reflect on what my hon. Friend the Member for Cardiff West (Mr Barros-Curtis) said. It has been nine months since this Government came into power, and our in-tray has had no shortage of issues from the previous Government to deal with—I note that no Conservative Members are present at this debate—but delay and dither is by far the biggest issue that we have had to deal with in our energy system. We have not been moving forward at pace on several key decisions that were taken, and I am afraid that Horizon is just one of many examples of delays and setbacks in nuclear project development since 2010.
It is a real disappointment that not a single nuclear power station was completed, or even progressed significantly, in that period, and the previous Government should take responsibility. Too many proposals have fallen by the wayside, leading to the loss of huge opportunities not only for our energy system but for local economies right across the country.
We are determined—I say this very clearly—to enable faster and more sustainable nuclear project development around the country. We have been clear that we are in favour of new nuclear. We want to create an investment landscape in which investors come to invest in nuclear projects in this country, and in which we give the certainty that nuclear will play a key part in our energy mix long into the future. We are taking important steps to kick-start new nuclear in Britain by working closely with EDF to get Hinkley Point C over the line, while Sizewell C is making good progress. However, the final investment decision is for the spending review. Great British Nuclear, the Government’s expert nuclear delivery body, is driving forward the SMR competition for UK deployment. Final decisions on that competition will be taken very soon.
I will highlight other actions we are taking to make progress.
Liz Saville Roberts
Will the Minister provide any information on whether there will be updates on sitings for SMRs? We understand that the siting is being reconsidered, and businesses that are engaged with a design are very keen to know where the likely sites will be.
Michael Shanks
I will come on to the question of siting in a moment. I do not want to be drawn into the particulars of the SMR competition because Ministers are not involved in that at the moment. That process is under way, and we are moving forward with it at pace.
First, our targets for clean power are really important. We have set out the clean power mission for 2030, as well as the wider question of decarbonising the economy by 2050, in part because we want to drive momentum in the energy space for investment into sectors like new nuclear. Nuclear power is a crucial part of our toolkit to deliver energy security and decarbonisation, and we have said that our striving towards clean power does not end in 2030. We are in a sprint because that is necessary for our constituents, who are paying far too much for their bills, but the effort will continue long into the 2030s and 2040s. That is when nuclear will particularly play a critical role.
Secondly, the new national policy statements reflect a new era of nuclear. Wylfa was, of course, one of eight sites designated for new nuclear in the EN-6 national policy statement, which recognised the site’s future potential. Nothing that we are doing takes away from that crucial future potential, but we recognise that the new range of technologies in nuclear open up a series of sites that are different from the eight that were fixed for larger-scale nuclear in the past.
National policy statement EN-7 is all about turbocharging our ambitions for new nuclear: not taking away from sites that were already designated but opening up a range of new sites. It sets out a refreshed planning framework for new nuclear reactors, including, as we have discussed, small and advanced modular reactors.
The proposed planning framework is robust, transparent and agile, and it is about empowering developers to identify more sites across the UK. Clearly, those must be set against a very robust set of siting criteria—we are not saying that new nuclear can be built anywhere in the country—but there are a lot more sites for SMRs and AMRs than there were in the past.
Thirdly, and this comes to a point the hon. Member for Ynys Môn made about regulation, we have been keen to cut outdated and bureaucratic rules that are holding back investment, but clearly we also have in this country one of the most robust sets of regulations for nuclear, which is important for the public to have confidence in nuclear energy. It is also why we have had decade upon decade of incredibly safe nuclear generation in this country. We will maintain robust regulation, but we will update it to make sure that we are driving forward investment. The Prime Minister recently announced that John Fingleton will lead a nuclear regulatory taskforce to identify opportunities for better regulation in the nuclear space, particularly to speed up delivery.
Fourthly, we are tackling one of the biggest reasons for delays and uncertainty head-on by taking bold action on the connections queue in the GB grid. Connections reform is about helping viable clean energy projects connect faster, and it is about giving investors the certainty that, if they come forward to develop a project, they will be able to connect to the grid much faster. Future nuclear projects will benefit from those reforms, freeing up the more than 700 GW currently sitting in the queue and freeing up a lot of that capacity for important future projects.
Returning to Wylfa, as the hon. Member for Ynys Môn noted, Great British Nuclear purchased the site alongside the site in Gloucestershire at Oldbury, which gives us a real opportunity to make strategic decisions. Although I hear the call to move faster on those decisions, it is crucial that we take time to make sure that they are fully informed. The question of how we finance any such projects is a critical one for Government to think about.
As we fix the foundations of new nuclear in this country, it tees us up for rapid future success. We will make sure that we drive forward the potential for communities to benefit from the supply chains and the construction that go alongside those sites. I reiterate that we are hugely ambitious and excited about the opportunity for new nuclear in this country. I recognise the frustration that the past 14 years of dither and delay have meant that it seems like we are not making as much progress on those nuclear sites as possible. I gently ask that we are given the space and opportunity to drive forward our ambitions for nuclear. After more than nine months, we have demonstrated the pace at which we want to move. We will do the same on nuclear, but we need the time to set that out fully.
I close by thanking the hon. Member for Ynys Môn again for securing this important debate. I know she will continue to engage with the Minister for nuclear, my noble Friend Lord Hunt, on these questions. We are ambitious for Wylfa and for other sites. The hon. Lady is right to push because “further and faster” is the mantra of this Government in a whole range of areas. She is also right to highlight the huge potential for her community, but also for our energy security across the country, of moving forward with new nuclear as part of our energy mix.
I thank all hon. and right hon. Members for participating in this debate.
Question put and agreed to.