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May 24, 2007

UK needs a balanced mix of generation

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
John Cousins, Managing DirectorJohn Cousins
Managing Director, Interim Energy Management Limited
Implications: During 2006, UK coal-fired power station generated just over 50% of UK electricity, and of the c.52 million tonnes of coal burnt in these power stations only 17.5 million tonnes was produced from UK mines. Around 22.3 million tonnes of coal was imported from Russia and burnt in UK power stations in 2006. UK natural gas resources are declining more rapidly than anticipated even with development of marginal oil and gas fields being stimulated by high prices. Increasing amounts of natural gas will have to be imported in the future with much of it coming from Eastern Europe. UK needs nuclear power for security of supply going forward.

Analysis:

The two remaining Magnox stations are in trouble due to graphite core depletion. Oldbury has been shut since summer 2006 and is awaiting a regulators permission to start up, but in any case will close for good in 2008. Wylfa 1100MW Magnox station is due to close in 2010.

The 14 Advanced Cooled Nuclear reactors at 7 plants have had poor reliability in recent years. 4 Reactors have been shut down since September 2006 with boiler tube weld problems. 1 re-started on 20 May, and another is sorting problems prior to re-starting. The other two should get the OK to re-start in the next few weeks, but all four will be restricted to 70% for the forseeable future.

2 plants are currently due to close in 2011, a further 2 in 2014, 1 in 2017, and the remaining two in 2023. After that UK's sole PWR Reactor will be the only nuclear station operating beyond 2023.

UK needs nuclear power to maintain security of electricity supplies.


Other Analyses of the Same Source Article:
Nuclear - time to move
May 29, 2007, Author: Hans Linhardt, President, LTDI, Inc.

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