Utility Week

UTILITY Week 6th May 2016

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

Issue link: https://fhpublishing.uberflip.com/i/674989

Contents of this Issue

Navigation

Page 7 of 31

8 | 6TH - 12TH MAY 2016 | UTILITY WEEK Interview lot of work has been done, and is being done, in preparation," he says. "Lots of things have happened down at the site, and if the sugges- tions were serious that EDF is just playing for time and is not committed to the project, I don't think we'd have all the work going on." Greatrex highlights that EDF's new office is in Bristol – the nearest big city to the Hinkley site – and is evidence of EDF's commitment to the project. He also states that a number of contracts with the supply chain have been lined up with preferred bidders – including a catering contract for food grown in the South West to be used to feed the thousands who will be on site when con- struction gets underway. This is all so that when the final investment deci- sion is made by EDF's bosses, "there isn't a huge gap" between it being signed off and construction starting. The NIA chief executive is clearly frustrated at the ongoing speculation surrounding Hinkley Point C, say- ing that the first new nuclear project in the UK for a gen- eration was always going be shrouded in rumour and counter-rumour because "it's the last chance for people to set out their concerns and objections to it". He even goes on to say that some of those spreading rumours are "mischief making". So Greatrex has concrete confidence that EDF will proceed with Hinkley Point C – even if no concrete has actually been poured yet. He also has belief in the Hori- zon and NuGen projects (which are at earlier points in the development process than Hinkley), whatever the eventual decision of the French energy giant. Horizon and NuGen do not depend on Hinkley Point going ahead because they both employ different reac- tor designs, although if you speak to the consortiums themselves, they will say they want to see Hinkley Point C going ahead because "it is all part of the bigger pro- gramme we need to develop the future energy mix". But what of the argument that by the time any of these new reactors come online in the late 2020s, they will be baseload dinosaurs in a decentralised and renew- able energy world? Greatrex says history teaches us a different lesson. Early electricity systems were based on decentralised energy and microgeneration, but out of necessity the system became centralised and reliant on baseload gen- eration. "We still need centrally dispatchable power for industry to pull on and we still need a significant amount of electricity," he says. For those who claim the development of storage will negate the need for nuclear, Greatrex again makes a pointed defence. "To put it simply, to store it, first you have to generate it." Greatrex argues that nuclear power will deliver the bulk of the required baseload, while renewables work- ing in conjunction with storage will minimise the need for peaking plant, which is usually made up of fossil fuel generation. Expressing his frustration at some commentators who do not appreciate the need for a mix of generation in the system – now or in the future – Greatrex says: "There is no silver bullet when it comes to generation technology. Those people saying there is are firing blanks. There are lots of different technologies about and all of them will have a role." One technology the government will be hoping has a future role is SMR (small modular reactors), so much so that in the Budget, chancellor George Osborne unveiled a £50 million package of support and his intention to develop a roadmap for the small reactors. This is "broadly the right thinking", according to Greatrex, but he warns against getting carried away with the technology. "It may give us another tech- nology to factor into the energy mix in the future, but it is not going to be imme- diate. I'm not saying we won't get there, but we're not there yet." When SMRs are finally proven and commercially available, Greatrex says they will have huge potential in terms of generating low-carbon electricity. "I think it's going to be complementary to existing technologies and it could open up a whole set of sites that are currently not suitable for tradition nuclear power generation. "There may be advantages for combined heat and power uses and there may also be SMR uses on industrial sites." Alongside these uses, Greatrex, firmly with his NIA hat on, is keen to bang the drum for the export and man- ufacturing potential the technology has. This will in part rely on consistent support from the Department of Energy and Climate Change, which is not a given bearing in mind the change of heart the govern- ment had over carbon capture and storage with the with- drawal of the £1 billion competition and the rejection of planning permission for the White Rose project. Greatrex has seen the development of energy policy close up from the opposition benches during his five years in Parliament, and believes support for SMR will be forthcoming despite the spate of changes the Conserv- atives have unveiled over the past year. "We've had relatively stable policy over the past three governments, including this one – and they have been of three different political colours. "Broadly speaking, there has been a shared objec- tive since 2006/07 onwards… This is a recognition of the importance and significance of climate change and the need to reduce emissions, particularly in power genera- tion, and the need to improve security of supply." Despite this, the NIA chief executive recognises that there is oen a conflicting interest between the long-term needs of the sector – which looks forward over decades – and the short-term tenure of MPs, who are looking at the next election. He adds that the National Infrastructure Commission should help to extend that political thinking, adding that "in a previous life I was heavily involved in proposals for developing an energy security board". This brings the conversation back to Greatrex's politi- cal life. Is it something he misses? "Fortunately I've moved into a world where there is a lot going on, so there isn't time to get bored or to think the pace is slow," he says with a wry smile. "I don't miss not having much time at the weekend or with the family." Fulfilling the role of a public servant is something he says he does miss "and will always miss". "It was some- thing that was a big part of my life, but it's something I don't do anymore. "I'm much more focused on what I'm doing now than replaying what may or may not have happened if the election had been different." Being able to spend more time fully getting into the depth and detail of the nuclear industry is one of the upsides Greatrex sees with his new role. "It's always fas- cinating seeing what is going to happen next," he says. And sometimes that includes sharing the floor with characters from Star Wars. "We've had relatively stable policy over the past three governments, including this one."

Articles in this issue

Archives of this issue

view archives of Utility Week - UTILITY Week 6th May 2016