China's lead in race for new nuclear plants could create UK skills famine

Britain's plans for a new generation of nuclear power stations will face a fierce challenge for skills and resources from countries keen to build their own, according to research published today.

China has plans for 24 nuclear plants and outline proposals for another 76, according to the Economic Research Council, using figures from the International Energy Agency and the IAEA.

"China's plans indicate its key role in new nuclear build, and the impact of just a small element of its projects being realised would have major implications for new nuclear build capacity — and the many constraints," according to the ERC.

The research into planned and proposed nuclear plants is part of the ERC's Digest of Energy Statistics 2008, tracking energy trends including consumption, reserves, prices and efficiency at theEuropean Union and world levels. The ERC defines planned plants as those with funding and planning consent , while proposed plants may lack funding, planning consent or both.

One of the digest's editors, Nigel Hawkins, said there had been little nuclear new-build in the world after the Chernobyl disaster 20 years ago, but rising fossil fuel prices and the need for new electricity capacity has meant that most leading countries are now looking at the possibility of new nuclear facilities.

"Over the next 20 to 30 years we are going to see a major ramp-up in nuclear build ," he said.

Hawkins pointed out that the number of companies capable of nuclear newbuild was limited. They include Areva, which has applied jointly with EDF for UK approval of the technology for the EPR reactor, General Electric, Westinghouse — which Toshiba bought from British Nuclear Fuels in early 2006 — and Atomic Energy of Canada.

In Britain, the authorities are looking at building a small number of nuclear power plants and are studying at least three reactor designs. British Energy and the Nuclear Decommissioning Authority are expected to put forward a number of sites close to existing nuclear plants or former facilities which have been closed.

Hawkins warned that, given the volumes under consideration by Beijing, the relatively small programme being considered by Britain could mean China would be seen as more of a priority by nuclear plant construction companies

In June, business and enterprise secretary John Hutton said: "As more and more countries seek to insulate themselves against future energy price rises and the irrefutable reality of climate change, they're competing hard to enable their own nuclear programmes.

"The UK government has the ambition and commitment to build and maintain the best market in the world for companies to do business in nuclear power.

"The UK must aim to become the world's number one location for new nuclear investment."

The government owns more than a third of British Energy and has given its blessing to plans for EDF to make a bid for the company, though no offer has yet emerged because of opposition by other shareholders. EDF is seen as a good fit because it has the experience of running existing nuclear power plants and nuclear new -build. But the government is keen to stress that its nuclear policy does not rest entirely on a British Energy/EDF tie-up.

A spokesman from the Department for Business and Enterprise said: "We are not putting all our eggs into one basket. "