Press release

MPs warn over subsidies for nuclear power

16 May 2011

Responding to new report published by the Energy and Climate Change Select Committee today (Monday 16 May 2011), in which MPs warn that current Government proposals on Electricity Market Reform (EMR) will effectively subsidise nuclear power, Friends of the Earth renewed its call on the Government to commit to decarbonising the grid by 2030 and prioritising the development of safer, greener alternatives to nuclear such as renewable energy and measures to cut energy waste.

Friends of the Earth's senior economy campaigner Simon Bullock said:

"This report shows the Government's plans are stacked in favour of nuclear power over renewable energy and are so vague they risk locking the UK into a new generation of polluting fossil fuels.

"David Cameron must heed the advice of its own green advisor and commit to decarbonising UK electricity by 2030 - standing firm against opposition from dinosaur departments like the Treasury.

"We don't need to gamble on new nuclear power - by boosting green energy alternatives and slashing energy waste we can tackle climate change and create new jobs."

The Coalition Agreement promised that there would be no public subsidy for new nuclear power, but MPs believe that new long term contracts with nuclear power stations and a carbon price floor will hand them windfall profits.

The report also says that the Government's Emissions Performance Standard (EPS) as proposed are "pointless" and risk a "dash for gas", locking the UK into a high carbon future for decades.

The ECC committee recommends that:

The Government should accept the advice of the Committee on Climate Change to decarbonise the grid by 2030 and put this at the heart of EMR;

The Government is upfront about the support it is giving to nuclear through EMR;

• A stronger Emissions Performance Standard is put in place to wean the UK off fossil fuels and switch to renewable energy;
• A new type of feed-in tariff should be established through EMR to help develop major renewable energy projects and other clean technologies - the
• current structure favours nuclear power;
• The wholesale electricity market must be fundamentally reformed to break-up the power of the Big Six energy companies;
• The money raised from carbon price support should be used to increase the Green Investment Bank's current budget;
• EMR should include an energy demand reduction objective.

ENDS

Notes to editors

1.   In its review of renewable energy, published 9 May 2011, the Committee on Climate Change (CCC) urged the Government to commit to decarbonising the grid by 2030. Friends of the Earth says achieving this target must be at the heart of electricity market reform.

2.   The CCC also advised that to meet our 2020 renewable energy target, the UK needs large-scale investment in renewable energy over the next 10 years supported by incentives. It said that in the longer term as much as 45 per cent of our energy overall - and 65 per cent of our electricity - could come from renewable sources by 2030.

3.   Friends of the Earth is calling on the Government to give the Green Investment Bank immediate borrowing powers to enable it to lend money to companies investing in renewable energy. This would help big energy projects like offshore wind farms to get off the ground now.

4.   A recent report by Jonathon Porritt for Friends of the Earth showed that the Coalition is failing on its pledge to be the "greenest government ever". A coalition of green groups including Friends of the Earth has also questioned this claim one year one.

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust