Faced with a gap in reliable and low-emission power supply in the early 2030s, the UK could extend by 20 years the life of the Sizewell B nuclear power station, the only nuclear plant in the country whose life can be extended for decades.
UK energy firm Centrica and France’s EDF, which operates five nuclear power plants in Britain, are discussing with the government extending the life of Sizewell B, the nuclear power plant in Suffolk, from 2035 to 2055, the Financial Times reported on Wednesday.
Unlike other nuclear power stations in the UK, Sizewell B features a pressurized water reactor and is the only operational nuclear plant in the UK whose life could be extended for a prolonged period.
Centrica and EDF could reach an agreement with the UK government in the coming months, if the government guarantees a long-term price for the electricity from the nuclear plant under a contract for difference, a source close to the talks told FT.
The investment to keep Sizewell B operational until 2055 would be $1.1 billion (£800 million), according to the source.
“Volatility in the energy markets over the past few years has reinforced the importance of securing a contract for difference to reduce commercial risks and enable that investment decision,” a spokesperson for EDF told the Financial Times.
The UK faces a gap in nuclear power generation as some reactors will retire soon, while new plants, including Hinkley Point C and Sizewell C, are not expected to begin producing electricity until 2030, and that’s an optimistic forecast.
Last year, Centrica confirmed that Heysham 1 and Hartlepool nuclear power stations would remain in operation until March 2028, extending their previously expected closure dates by one year.
The UK government has an ambition to have as much as 95% of all electricity coming from low-carbon energy sources by 2030, including renewables and nuclear.
But last year, the UK increased electricity generation from fossil fuels for the first time in four years, as higher natural gas generation had to offset the lowest nuclear power output in decades.
By Charles Kennedy for Oilprice.com
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