Nuclear energy becoming popular in UK

Publish date: May 13, 2005

The UK nuclear plants operator British Energy is trying to get financing from the biggest UK banks to finance construction of the new nuclear power plants.

The British Energy was privatised during Margaret Thatcher, but in 2002, it was nearly bankrupt. Then the UK Government gave interest free loan to keep the company afloat. Therefore, today the UK government refuses to allocate the financing for the construction of the new nuclear plants. From 2012 to 2020 the UK will close down eight plants built in the 60s. The nuclear energy can drop from current 23.7% to 4% if no new nuclear plants are put in operation, the Expert magazine reported.

Just a few years ago the UK government was negative towards the nuclear plant construction to substitute the retired reactors, but due to the high oil prices and depleting oil resources in the UK zone in the Northern Sea, nuclear energy is becoming popular again in the Great Britain.

However, due to the high cost of the nuclear plants’ construction the British Energy and the banks would like to make reforms in the UK energy sector. According to the plans, the energy sector will be divided into three parts: nuclear power plants (30-35% of all electricity generation), coal and gas plants (45%), alternative energy (20%). The competition would be allowed inside the segments, but not between them. This could guarantee longterm economical effectiveness of the nuclear and alternative energy, the Expert magazine reports.