Britain’s long-term energy policy lay “in tatters” on Thursday after two of the ”big six” energy companies pulled out of plans to develop new nuclear plants.
In a ”devastating blow” for the Government’s energy policy, RWE npower and E. ON announced they would end their joint venture to build nuclear power plants in Britain.
The decision means that the ”Horizon” project, which would develop reactors at Wylfa in North Wales and Oldbury-on-Severn, Glos, is now effectively dead.
The German-owned companies, which operate fossil fuel and renewable generation in Britain, admitted they were looking for a new owner for the Horizon Nuclear Power.
The decision was made amid the global economic crisis and significant costs of the project, they added.
Unions said the “devastating blow” to the government’s energy plans had thrown ministerial plans to generate adequate power into chaos. Energy analysts said the Government did not have a Plan B and needed to move fast to attract new funding for the project or the entire policy was in jeopardy.
But environmental groups seized on the news as evidence that nuclear power, which provides just under a fifth of UK electricity supplies, was not a viable option for the country’s future energy mix.
The government admitted the decision was “clearly very disappointing”.
Thursday’s announcement was made in a joint statement issued by the two companies following a “strategic review, separately carried out by both”.
RWE npower and E. ON UK said today that they would not proceed to develop new nuclear power projects in the United Kingdom through the Horizon joint venture,” it said.
“RWE and E. ON will now focus on finding a new owner for Horizon Nuclear Power.
“Both parties will endeavour to ensure that Horizon’s assets and work on development can be taken up quickly by other potential investors.”
The companies insisted their joint venture company Horizon’s development projects were viable for another investor to develop nuclear sites.
They also confirmed they were committed to investing in energy schemes in the UK.
more information:http://www.telegraph.co.uk/earth/energy/nuclearpower/9173253/UK-energy-plans-in-tatters-after-Npower-and-E.-ON-nuclear-plant-withdrawal.html
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