Britain reviews energy policy, nuclear on agenda

LONDON - British Prime Minister Tony Blair put nuclear power back on the agenda when he launched a review of energy policy, pledging to decide by the middle of next year on how to fill a looming energy gap.

A review concluded two years ago that nuclear costs were unclear and that renewable sources such as wind or solar power, along with less wasteful use of fossil fuels, could suffice.

But booming oil and gas prices, global warming, an increased emphasis on energy security and the need to decide soon on whether to replace ageing nuclear plants is putting pressure on the government to take another look.

"(The review) will include specifically the issue of whether we facilitate the development of a new generation of nuclear power stations," Blair told business leaders, adding that there would be a firm policy announcement in early summer 2006.

Anti-nuclear demonstrators, concerned about risks to the environment from dangerous nuclear waste, staged a protest ahead of Blair's speech, mingling in suits and ties with delegates before clambering up into the rafters of the conference centre.

The prime minister was forced to deliver his speech in a cramped sideroom as the Greenpeace protesters unfurled a banner and dropped leaflets, saying: "Nuclear: Wrong Answer".

Whatever the outcome of the review, the nuclear lobby and environmentalists agreed it would give a signal to the rest of the world on whether to build more nuclear plants or close them.

"At the very least the nuclear plants need to be replaced, and we suggest that they should be increased," said Nigel Withey, managing director of Inenco, UK-based energy consultants. "Renewables have a part to play, but only a part. We don't see a huge alternative to nuclear power."

Speculation is rife that Blair has already made up his mind to invest in nuclear power but a significant number of lawmakers in his centre-left Labour party are against the idea.

Blair told the annual conference of the Confederation of British Industry (CBI) employers' group that in 15 years, the mothballing of old coal and nuclear stations would leave a big hole in Britain's energy supply.

"Some of this will be replaced by renewables but not all of it can," he said.

Business leaders favour nuclear power but environmental groups want more efficient use of fossil fuels, less electricity waste and more renewable power.

Britain has become a net importer of gas as its North Sea supplies dwindle and the government is concerned about the security of supply, which will increasingly come from abroad. Rocketing gas prices have highlighted possible problems.

Only one of the UK's nuclear power stations is due to be open in 2023. Without new investment, nuclear power will meet 4 per cent of Britain's energy needs by 2010, down from 21 per cent.

But Blair faces opposition from Labour lawmakers, some 40 of whom have signed a motion rejecting new nuclear power stations.

Since a May election slashed his majority, that number siding with opposition parties can defeat the government in parliament, although Blair can probably count on opposition Conservative support for nuclear energy.

- REUTERS