UK’s nascent nuclear plants in trouble

With huge costs involved in building new nuclear power plants in Britain and Hollande’s decision to reduce reliance on atomic power, French firms are likely to pull out of UK projects for building nuclear plants, reported The Independent.

Furthermore, the newspaper said that Hollande’s insistence on investing in the eurozone to counter the effects of austerity would lead French firms to withdraw from projects in the UK.

In March, German power companies, RWE npower and E.ON, also declared that they were withdrawing from their joint venture to build two of the six planned new nuclear reactors at Wylfa in North Wales and Oldbury-on-Severn, Gloucestershire.

The German companies said they had decided to sell their share in the project due to cost-escalation and a payback period which took longer than expected.

This comes as Britain is one of the European Union’s biggest greenhouse gas emitters and, as part of The UK Low Carbon Transition Plan, London is expected to close half of the country’s coal-fired power stations by 2015. Coal-fired plants in Britain generate 40% of the energy produced in the country.

ISH/GHN/HE

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