Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 120-139)

SUSTAINABLE DEVELOPMENT COMMISSION

23 MAY 2006

  Q120  Mr Clapham: The figures that you referred to that you have just put your hand on, is there any chance of us being provided with those? It would help in the debate.

  Sir Jonathon Porritt: Of course. Absolutely.

  Q121  Mr Clapham: Thank you. Turning again to our scientific base, do you feel we have got the capacity to deal, on the one hand, with decommissioning and waste and, on the other hand, with new build?

  Sir Jonathon Porritt: One of the big issues that we surfaced in doing this research was the issue about capacity, and even very enthusiastic advocates for nuclear acknowledge that there are some extremely serious capacity issues. As I understand it, those capacity issues are already being felt with the new reactor in Finland where they are finding it difficult to recruit in the numbers of qualified staff that they need to carry out different functions in their construction programme. If you think about what a 10 gigawatt replacement programme would look like and the capacity needed to do that, coupled with a commitment to engage in the decommissioning challenge that we face in this country and move forward on a waste-management strategy rather than just allow the problem, as it were, to fester, just sitting there without any idea what we are going to do about it, this is a huge set of skills which would be required for the UK Government to move forward on all three fronts at the same time.

  Q122  Mr Hoyle: Is there any circumstance, Sir Jonathon, in which you might see yourself supporting nuclear power in the UK?

  Sir Jonathon Porritt: What we have said, and we have tried to be absolutely upfront about this, is that we are advisers to the UK Government and did not feel it was appropriate for us to make judgments about whether nuclear might be appropriate to other governments elsewhere in the world, and on one occasion we somewhat jokingly said that were I the Chairman of the Sustainable Development Commission in France, the job of persuading the French President that they did not need any more nuclear power but could simply decommission all their existing reactors and move to alternatives in France, that would be a pretty steep advocacy challenge, if I could put it like that. We also looked at what is necessary in China, in India, and we acknowledge that different circumstances in different countries may well persuade the governments of those countries that nuclear is an important part of their mix. That is a long preamble to us saying that we have done the detailed analysis on the issues here in the UK and came out, at the end of that analysis, strongly of the opinion that new nuclear was not necessary for the UK to meet its over-arching energy objectives. Can I imagine any set of circumstances in which nuclear would be necessary in the UK? It is difficult, because there are those who say that if we continue to prevaricate on efficiency, renewables, CHP and so on, we might see a gap opening up so precipitously in front of us that we would by default have to bring in nuclear as the only means of bridging the gap. The truth is that that gap will only open up over time and, once we are aware of how big the gap is, because of our inaction on all of those different areas, it would be too late for nuclear to make the contribution that it would be required to make at that stage. It is difficult for me, as Chairman of the Commission, to see those set of circumstances, but I have to reflect the views of the Commission, the commissioners here, because some commissioners did not come out with an outright: "No, it is not appropriate for the UK", they came out with a statement saying, "This is not appropriate for the UK now, in the knowledge that we have about the challenge that we face today", but also said that there might be a set of circumstances in the future where they would be persuaded that nuclear was a necessary part of the mix.

  Q123  Mr Hoyle: There seems to be a bit of hypocrisy here, because we are quite happy to take nuclear power from France, which is 60 miles away (the nearest reactor), and I do not see how we balance that off either when we talk about prices. Yet, at the same time, we are encouraging the interconnector, which was meant to operate both ways. It certainly works one way, and that is about sending nuclear power to the UK—nuclear electric generation—and to the Channel Islands, which are totally dependent.

  Sir Jonathon Porritt: Yes, and we flag that in our report. The one thing that I hope we have really succeeded in doing is saying that this argument is not helped by people who ignore the realities of our current situation or are so passionately pro- or anti- that they obscure the degree to which we are currently dependent on nuclear, not just our own but on that that comes from France, and on the very substantial consequences of opting to remain non-nuclear for the future. We have said time after time, if government decides that it can meet these challenges without nuclear, it is still an absolutely huge challenge to achieve the carbon savings and the security of supply issues without nuclear. It is a massive challenge. We have not tried to undersell that at any point; we have tried to be very upfront about how big an issue that is going to be for the Government.

  Q124  Chairman: You state at page 19, paragraph 3.22 of your main position paper, "The UK's renewable resources are some of the best in the world, and could provide all the UK's electricity over the longer term." Is that the view of the Commission?

  Sir Jonathon Porritt: Yes, it is, but I have to qualify it instantly by saying that it could only meet all of our electricity needs at a very considerable financial burden. The research papers that we looked at in this respect are able to demonstrate the theoretical capacity for nuclear, the realistic capacity, if you like, in terms of when you start factoring in some of the issues regarding siting, planning, grid connections and so on, and then, thirdly, is it realistic financially as well as realistic in all those logistical and infrastructure terms, and so on? When you factor in financial realism, which is obviously to be a very important point for the taxpayers of this country, then the figure falls away from a theoretical 100% resource back to something much closer to the figures that we have quoted there, which is around 65% of total electricity generation at the moment; but even that (and we do make this point very clear) comes at a considerably higher cost than people are paying for their electricity today.

  Q125  Chairman: This commendably objective paper The role of nuclear power in a low carbon economy is a bit different from your interpretation of it, it is a little more journalistic in its style, and I note that the Commission has broadly seven environmentalists, five people I cannot quite define, two industrialists, and the vote at the end on alternative positions to nuclear power seems roughly to reflect the composition of the Commission. Did you just reinforce your own prejudices during the conduct of the inquiry? Did anyone change their minds on important issues?

  Sir Jonathon Porritt: I must, first of all, correct a misapprehension about the make-up of the Sustainable Development Commission. We do not have seven environmentalists actually. In fact, some people have criticised the Commission for not having enough environmentalists as fully paid up environmentalists, because most of our commissioners, in fact, reflect different sectors, whether it is education, or health, or concerns about work issues, economic issues, and so on. It is true that two of the business people on the Commission felt that nuclear would be a necessary part of the mix for the UK in the future; two other business people on the Commission did not. I would not want you to paint all of our business representatives on the Commission into the pro-nuclear box and all these kind of zealous greenies into the anti-nuclear box, because it really was not quite like that. We did not carry out a before and after exercise, as in vote now and 15 months later vote again, but I can genuinely reassure you that a lot of commissioners, if they were sitting next to me here, would tell you that a lot of their views about nuclear power changed during the course of this inquiry, because, as the research emerged and as we were able to dig deeper into some of these things, what is inevitably a set of prejudices that you bring with you to any engagement in a debate of this kind were tested very hard indeed, and I can speak for that personally. I was pretty convinced before we started this inquiry that the issue about availability of uranium, so resource issues around uranium as well as resource issues around oil and gas in the future, was a massively problematic issue for the nuclear industry to have to cope with. The research we did indicated that that is not really the case; that actually if you look at availability of supplies over the next few decades, it is likely that those supplies will be sufficient for considerable expansion in the global nuclear industry. That comes with two caveats: (1) is the uranium that is being brought on there of a high enough grade to ensure that you are not emitting vast amounts of carbon by having to purify, enrich that uranium to the level that is required for burning in a reactor, and (2) we do not really know because there has not been a lot of prospecting for uranium over the last 20 years and those countries that have already very advanced uranium mining facilities have not needed to expand those facilities very much because the nuclear industry has basically been on hold. But it is true that, if you talk to the Australian Government, or the Canadian Government, let alone the Government of Kazakhstan, you will hear some extremely optimistic assessments of availability of high-grade ore for the foreseeable future. So, that issue for me changed as we researched, and I think genuinely the secretariat would confirm that individual commissioners pretty much all changed certain positions as we went through the process.

  Q126  Chairman: As Jeremy Paxman would have said, "Well anticipated, Porritt", because that was one of my questions for you later on uranium supply, but you have dealt with that one. Thank you very much. Is it fair to say that what swung it for many of you is your enthusiasm for microgeneration—and we look forward to your report on microgeneration, which you are due to produce shortly—which argues against a centralised grid. The trouble with nuclear is it locks you into a centralised grid for the foreseeable future?

  Sir Jonathon Porritt: We spent a lot of time analysing and then reflecting on a number of different opportunity costs, areas of opportunity cost, if you pursued a nuclear replacement programme. Some of those opportunity costs would come forward in terms of straight availability of capital to invest in renewables at the same time as investing in a major new nuclear programme; some of the opportunity cost comes in flexibility in terms of the lock-in factor, but if you go for a 10 gigawatt nuclear programme, let alone a 20 gigawatt programme, you are pretty much locked into the infrastructure needed to deliver that electricity into our economy, into the grid, for the next 50 years. What that almost certainly means is that the necessary investment in upgrading our grid in this country would be geared to a very, in our opinion, old approach to electricity distribution through a central grid-based system. At that point we did look at the opportunity costs of lock-in. We looked at what would happen if we could not bring forward more opportunities through decentralised energy systems which we believed were going to work much better, for a host of different reasons, and I think you probably do not want to go into those today, but we did feel that if you pre-empted the possibility of major new investments in decentralised energy supply and use systems, then that would cost this country very severely in terms of the opportunity costs for the future.

  Q127  Chairman: But similar considerations would apply to new build in coal with carbon capture and storage as well?

  Sir Jonathon Porritt: It does, indeed, if you are going for a very large plant. The one area where it does not really apply is for smaller scale gas-fired plants, particularly if you are talking about combined heat and power for use in inner city areas where you can take the heat and use that for district heating schemes of that kind; but then you have got much more flexibility, because plant size can come right down from the massive plants that we are talking about at the moment.

  Q128  Miss Kirkbride: You mentioned a minute ago security of supply, not just with regard to uranium, which is a slightly different issue, but, obviously, given that so much of our supply is based on fossil fuels at the moment, which we used to supply ourselves but which will now have to come from other parts of the world which are politically challenging, I just wondered where that was factored into your deliberations on nuclear: because no matter what progress we make on renewables, albeit the 100% progress that you are talking about looks like a long way off, whatever progress we make on being more efficient, we are still going to have to burn fossil fuels for a very long time, are we not, and they are going to be coming from places that we are not very comfortable with. Is that right?

  Sir Jonathon Porritt: I feel quite comfortable about Norway personally. I do not think our security of supply is massively threatened by Norway and Norway's investment in new infrastructure is going to be hugely significant for us over at least the next 30-40 years. When we talk about security of supply around gas, people instantly leap to President Putin and Russia, but that is not actually the full picture in terms of the places from which we resource this gas, and, do not forget, as we move towards diversified sourcing, we will have more coming into this country by other means, not necessarily dependent on the pipelines through to Russia, so it is not quite as grim a picture as us with Putin's hand around our neck in the way that is sometimes portrayed. However, I am not going to disagree with the broad thrust of your argument because it is true that, even if we got really serious about efficiency and did what many experts believe is now possible, which is to reduce total energy consumption in this country by 50% over the course of the next 20-25 years, and even if we began to bring renewables forward at scale, made sure that all those offshore wind farms were coming on-stream in the time period allowed for, that we had a really serious biomass programme in this country instead of a pathetic imitation of a serious programme that we have got at the moment, if we really got serious about microgeneration and all the rest of it, it still does not totally account for all the energy that we need in the interim period; so, yes, we will continue to use fossil fuels. Our estimate was that the amount that we would need if we did all of those things is at a scale where we would not be imperilled by having to depend on just one supply inð ñall circumstances and, therefore, causing considerable anxiety if for geopolitical reasons that monopoly supplier chose to punish the UK by either charging more or discontinuing supply in those circumstances.

  Q129  Miss Kirkbride: Is your 50% reduction of energy use compatible with economic growth? Where does economic growth fit into the 50% reduction?

  Sir Jonathon Porritt: It is certainly compatible in our mind with economic growth, because we are persuaded that the only way in which nation states are going to be able to grow their economies in the future is if they achieve these massive increases in energy and resource efficiency. I do not know where this Committee sits on this issue, but we will see further oscillation in the price of fossil fuels, there is no question about that, but, whichever way you cut it, we are never going to go back to fossil fuels and where they were two or three years ago ever, and I do not think anybody in the industry thinks that we will either. We are looking at an increased cost for industry, an increased cost for the private consumer from energy consumption, which means that the smarter we get about reducing energy use, the better off we will be, both in competitive terms for the economy as a whole and, in personal terms, for our use of energy in our homes, our cars, if we have cars, and so on. Our read is that far from energy efficiency being a threat to competitiveness, we would argue precisely the opposite, which is those countries that get serious about energy resource efficiency will be the most competitive countries in the future and those that do not will be punished for that failure to accept a new reality about energy supply and cost.

  Q130  Miss Kirkbride: Where does the fuel reprocessing argument feature in your deliberations and the UK's approach to that?

  Sir Jonathon Porritt: The issue about reprocessing is obviously a very big one, because it goes to the heart of the volumes of nuclear waste that we would have to deal with. The assumption that we have made in our assessment of waste arising from a replacement programme are based on a simultaneous assumption that reprocessing would cease. There may be some who disagree with that and think that we will continue with a reprocessing industry in the UK. We genuinely think that is very unlikely, for cost reasons alone, and, therefore, made the assumption that we would not have reprocessing. Without reprocessing spent fuel needs to be classified as high-level nuclear waste, which means that the volumes of nuclear waste which would then need to be disposed of through a new nuclear programme rise substantially, and I think the figures we gave were that they would rise by at least 300% as a consequence of spent fuel needing to be disposed of as high-level waste. That is a very big issue for a waste management strategy for this country, and that is why when we say that, if the Government claims they have got a clear resolution to nuclear waste issues in this country, you look at a question like that—are we going to continue with reprocessing or are we not—and it has a massive bearing on the costs of a nuclear power programme and on some of the liabilities going forward in the future, those liabilities either being borne by a private sector generator or company, whatever it might be, or being borne by the taxpayer through a government decision. Those are massive issues that do need to be looked at as part and parcel of this approach to a proper waste management strategy.

  Q131  Miss Kirkbride: Why are we not going to do it any more? You said cost.

  Sir Jonathon Porritt: Because the economics of reprocessing are extremely parlous. Many people in the nuclear industry do not believe that they are really viable in any serious sense. We have had huge difficulties technically, as you know, with our reprocessing plant here in the UK and, unless something dramatically different was to materialise in the use of that technology, it does not seem to us that it is going to be a viable part, if we have one, of a nuclear supply chain.

  Q132  Dr Wright: In terms of the environmental landscape issues and in terms of what the Government would desire, i.e. to use some of the existing nuclear power station sites to upgrade and probably renew, they are all mainly on the coastline, and, obviously, with coastal erosion and sea-level rises there is risk to that particular element. If this is going to be the case and the Government have to revisit the criteria that is going to be laid down, would this pose a significant risk to the Government to try to fast-track some of the planning processes and obviously extend the time that it is going to take to build the nuclear power stations?

  Sir Jonathon Porritt: I think there are two issues there. One is whether or not we are going to face a set of new considerations because of climate change and increased sea-level affecting existing nuclear sites, many of which are, indeed, on our costs. We did not do a detailed appraisal of what the increased risk would be at those sites, and what would happen if you simply went for the existing sites would certainly need to be part of any strategic consideration. I cannot comment with authority on that from the research that we did ourselves, but it is pretty clear that some of those sites are going to be very vulnerable and would probably not be available to government for a new nuclear reactor on the same site as where the existing reactors are today. That, I think, is a very big issue which would have to be addressed head-on. The second point, which was more about whether or not the Government is trying to short-cut planning and consenting processes, licensing processes, to get approval for a new reactor programme faster than would otherwise be the case, is a hugely significant concern that we have, because we are of the opinion that, were government to be seen to be short-circuiting the proper planning and licensing processes for an expedited route to a new nuclear programme, nothing could be more calculated to raise public concern and anger than that single decision. That does not mean to say that we are automatically saying that every planning process has to be as long as the Sizewell B process, whatever it might be. The planning process needs to be as thorough and rigorous as it needs to be to ensure that the right decision is taken with the right degree of public assurance. A fast-track sounds to me like the wrong kind of approach to that; so we would both need a national process, and we are completely convinced on the Commission that you would still need to go for a local planning inquiry for any particular site earmarked for a new reactor. We do not believe that you could do without that.

  Q133  Dr Wright: In terms of the question of the wind turbines, quite clearly they cause an element of concern, certainly when you talk about land-based turbines. Up in Cumbria, for instance, an application was turned down and on the east coast, in my constituency, we have the largest offshore wind farm and no objections to that. It certainly has a nice impact as far as I am concerned. However, I can understand that there are going to be significant concerns for a mass of wind turbines through the countryside and will cause concern as well as far as planning is concerned. Do you not consider that wind turbines are going to cause problems for the Government as well, in terms of landscape issues?

  Sir Jonathon Porritt: Yes. We acknowledge that this is a matter of considerable concern. If you look at the actual figures regarding planning applications and the percentage of applications that are going through the system, it certainly ought to be of concern to the DTI and to government because a very large number are still being turned down. We have, therefore, always argued that it is going to be more politically acceptable for government to source more of its wind offshore than onshore, simply because the controversies associated with offshore applications and licenses are less than the controversies associated with onshore, although there are still big issues with the offshore planning process as well. The downside to that, of course, is that offshore wind is considerably more expensive than onshore wind, which is why we remain committed to a substantial and ambitious onshore wind programme as a critical part of our overall renewable energy mix and are less tolerant of some of those protectionist voices than others are. When we are accosted by people saying what a blot on the landscape it might be, we are tempted to remind them that if climate change turns out to be as grave an issue as many people believe it to be anyway, the impact on their view and the impact on biodiversity in the UK will be so irrelevant to them that they will barely believe that they made such points at the time. I suppose we are talking about proportionality. If climate change is as serious as we are now told it is by our Chief Scientist and by most independent experts, then excessively sensitive concerns about landscape are inimical to a sustainable energy system for the UK.

  Q134  Mr Hoyle: I am interested in turbines. Obviously—you are quite right—people believe the environmental impact is too great on land, the argument being that we ought to go for more offshore. What worries me is not so much that, but what percentage of the time are they actually generating, because there is obviously a down-time when there are so many out of a fleet, or whatever, but also low wind causes a problem but high wind is a great problem where they cannot generate electricity either. How efficient are they in reality? Is it 50% of the time, 40%, 80%? I am not quite sure. Nobody has actually given us a figure on down-time.

  Sir Jonathon Porritt: We would very happily send you the report that we did on wind power last year, which does give detailed answers to those questions about intermittency, about reliability and all the rest of it, because it is a very important issue and not one to be brushed aside, but nothing like as big a block on including wind as a major component, the foundation for renewable energy strategy, as people sometimes make out, and (a tiny aside) the public opinion against wind power is noisy, brash and all over the place, but if you actually look at the surveys of people who live in the vicinity of wind farms, therefore are most immediately connected with them, you will see incredibly strong levels of public support for wind farms anywhere in the UK that has got a wind farm in that vicinity; so we should not get this out of proportion either.

  Q135  Chairman: Do you believe the opposition to wind farms is actually fuelled actively by the nuclear lobby as well?

  Sir Jonathon Porritt: I have no evidence to that effect, but I cannot deny that such a suspicion has passed through my mind.

  Q136  Chairman: If you write in it will be adopted here certainly.

  Sir Jonathon Porritt: Almost as guardedly as I have just expressed my answer to you, Chairman.

  Q137  Anne Moffat: I certainly find that public support where there are nuclear power stations is very pro-nuclear power stations. The same thing could apply if we had a power station in our constituency, Stromness and East Lothian. I want to go back to planning. You seem to be answering our questions very comprehensively before we get the chance to ask them, so rather than wait, I thought I would jump in now. I am sure you are aware of the political dimension of devolution in Scotland and how they have power over planning permission for any new build for nuclear. How do you think that is going to affect the process? Do you think we should be UK-wide imposing new build nuclear in Scotland and Wales if Scotland and Wales do not want it?

  Sir Jonathon Porritt: Obviously an enormously sensitive issue. We did not go into this in depth in our report, but, as we understood it, the actual decision about this is not a devolved power, as such, but Scotland clearly would have a power, through section 36 of the relevant Act, to ensure that no nuclear power stations were built in Scotland. That obviously makes the politics, the party politics, around nuclear power pretty sensitive. I am not sure I am the best person to comment on that in reality. We feel that the arguments that have been raised about nuclear, whether it is in England, Wales or Scotland, are the same and to a certain extent there are particular national issues vis-a"-vis Wales and Scotland over and above the issues regarding the UK as a whole, but, by and large, the arguments either for or against are the same.

  Q138  Anne Moffat: The electricity generation, the percentage, is far higher in Scotland than it is in the UK.

  Sir Jonathon Porritt: Of course. Indeed.

  Q139  Anne Moffat: The other thing I wanted to ask you about was a point you make in your paper about your contributions in engaging with the public. Do you think that we have engaged adequately with the public on the Energy Review or do you think we need to do an awful lot more, certainly in terms of new build nuclear?

  Sir Jonathon Porritt: Our engagement with the DTI at the moment around the Energy Review is not just about the substance of the decision about what the right mix is for the long-term energy needs of this country, but it is very much about that issue about process. There is a school of thought inside DTI which would have you believe that the consultation around this Energy Review is sufficient in itself to persuade the general public that the debate has been adequately thought through and adequately had in this country. We fundamentally disagree with that. The consultation processes around this Energy Review have been extremely partial in many respects, selected audiences, small groups of people. By definition they have not touched the general public in the way that you would expect a consultation engagement process actually to do, and there are massive concerns in our mind if the Government says, "We have done all the consultation as well as the analysis, and so we are moving straight to a decision." One of the strongest recommendations we have made to the Prime Minister around this issue is that, even if they come to a conclusion that they are minded to bring forward a replacement nuclear programme of 10 gigawatts, they should not move instantly to that as a firm decision, they should then engage with the general public about that intention as part and parcel of a much fuller engagement process.


 
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