The call comes with the release of a new report: “Sustainable Energy – a Long Term Strategy for the UK” which contains substantial modelling and analysis of the costs of various energy sources. The report sets out a wide- ranging future energy strategy for the UK to deliver secure, reliable and competitive low carbon energy. In particular, future policy should include a range of options which feature fossil fuels, renewables and nuclear power.
Large rises in prices, supply fears over the next two winters and rising carbon emissions urgently require a sustainable long-term energy strategy, says the EEF, without which UK competitiveness will be threatened.
EEF’s modelling of the cost of various energy sources shows that:
- in a high gas and carbon cost scenario, nuclear power could be the most competitive form of energy supply;
- the competitiveness of nuclear power is very sensitive to the rate of return required by those potentially financing the construction of new plants and that the government can have a significant influence on this;
- the EU Emissions Trading Scheme is currently too immature to send a strong signal to investors about future carbon prices