Three questions answered about what the UK government's new nuclear energy investment means for Scotland

The UK government has found more money for development costs for a nuclear power plant. Ironically, after claiming the cupboard was bare and they had to withdraw winter fuel allowance from pensioners who were expecting the money to help them get through this winter, they have decided to invest much more in nuclear power - which will increase the cost of energy bills not decrease them.

Here are three questions answered

1 What is the UK government spending and where will the money come from?

The UK Department for Energy Security and Net Zero has decided to create a new scheme called the Sizewell C Development Expenditure (Devex) Scheme. It is going to fund this to the tune of £5.5 billion, a chunk of that money will go into the pockets of the French government which owns the development partner EDF.

The Devex fund is explicitly separate from the other funding stream for Sizewell C which has already seen billions invested. It is not even going towards building the plant - it is for assessments that are needed prior to a final funding decision. 

Nuclear energy is among the most expensive energy in the world. Writing in Advanced Science News, global expert Professor MV Ramanda wrote: “Although often blamed on public opposition, especially resulting from the devastating accidents at Chernobyl and Fukushima, the main cause for the drop in nuclear power’s importance has been the steadily rising cost of nuclear reactors and the almost invariable tendency for project construction costs and time to escalate dramatically.”

Scots will find a share of the cost of this new development fund is added to their bills. In 2022, the UK government then led by Boris Johnson passed the Nuclear Energy Financing Act which created a mechanism for loading the cost of nuclear development onto billpayers. 

2 Will this benefit Scotland? 

No. This is yet another cash injection into an outdated energy technology. Proponents of nuclear energy like to argue that it provides a baseload for a renewable grid for ‘when the wind doesn’t blow.’

But offshore wind is wind power that is almost constant, even when it seems as if there is no wind on shore. Modern solar panels work well, even when it is overcast. Tidal power is developing fast as a source that is variable on a daily basis but predictable over the long term. All of these methods are much cheaper and easier to build, run and decommission than nuclear power. 

The lack of a system of localised pricing in the UK is the biggest problem for Scotland. The UK electricity systems operator (ESO) already wastes millions on paying wind turbines in Scotland to turn off their blades. Another is the weak National Grid. It refuses permission for many wind plants to be built or says they can’t get connected to the grid for many years. 

Scotland already creates more than enough renewable energy to meet its own electricity needs. It is rich in sources of renewables - wind energy, tidal energy, hydro and solar. But it is being held back from reaching its potential by being part of the UK. Sadly, as part of the UK, Scotland has very little say over how energy policy is decided. 

3 What does Scotland need to make the most of its energy potential?

Scotland needs localised pricing to make electricity cheaper near where it is produced. That will encourage energy-intensive businesses to be based here, making products that can be competitively priced and benefiting the economy. So far as part of the UK, Scotland is lagging far behind Scandinavian countries despite having similar energy resources. 

Scotland also needs major investment in the grid transmission system. Scots energy producers have to pay ten times what English ones do to connect to the grid. Scots also pay more in standing charges - despite being close to where so much energy is produced.

Scotland was once a world leader in hydropower. No longer. The country desperately needs a market framework to be put in place to allow pumped storage hydro facilities to be built. 

The new UK Government made a big play before the election of its plans to create a state-owned energy firm called GB Energy that would be based in Scotland. It said that this was going to be a key player in its energy policy. But so far, the new Government has not even found the time to decide where the HQ will be based - indicating that it is not that important after all. 

Conclusion

Scotland is not at the heart of the new UK government’s decision making when it comes to energy. The decision to take winter fuel allowance from so many pensioners who were depending on it was a shock. 

Now the decision to push another £5.5 billion into development costs for a nuclear power plant in England which Scotland does not want or need is still more evidence that Scotland does not count. Only as an independent country will Scotland be able to control energy policy and fulfill its potential as a renewable powerhouse. 

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