U.K.’s Johnson Pushes to Make Nuclear 25% of 2050 Power Mix

(Bloomberg) -- U.K. Prime Minister Boris Johnson wants to make nuclear power 25% of the nation’s electricity mix by 2050, a strategy that would bolster the renewables industry and help wean the economy off a dependence on Russia’s fossil fuels.

The government is considering setting that target after meeting with industry executives Monday, according to two people familiar with the matter who asked not to be identified because the information isn’t public. The goal would mark a significant expansion of nuclear power, which currently accounts for about 16% of the capacity, as the nation tries to satisfy soaring demand, including from electric vehicles and home heating pumps.

A final decision hasn’t been made on any nuclear target to include in a plan ministers could unveil as soon as next week.

The U.K. is drawing up an energy-security strategy in the aftermath of Russia’s invasion of Ukraine, with a focus on homegrown wind and solar power, and nuclear as a backup capacity. Ministers are meeting with executives from all segments of the industry to find out how quickly plans can be rolled out to build more capacity.

Johnson “set out this government’s commitment to supporting the industry to develop a thriving pipeline of future nuclear projects in the U.K. in a cost-effective way,” according to an emailed statement from his office.

Representatives from Aviva Investors and Legal & General Group Plc were among those attending Monday’s meeting. The issue hamstringing the industry is the large upfront cost of building reactors, which can run to as much as 20 billion pounds ($26 billion).

The government’s current policy is to agree to build one large-scale nuclear plant before then -- likely Electricite de France SA’s Sizewell C in southeast England. The company also is considering extending the operating life of its Sizewell B station for another 20 years to 2055. Another three stations are set to close by 2024.

Plans to build a second nuclear project at the Wylfa site in Wales could be resurrected after a previous attempt was shelved by a lack of funding. Proposals have come from a U.S. consortium, involving Bechtel Group Inc. and Westinghouse Electric Co. LLC, for a large-scale AP1000 reactor, and from Shearwater Group Plc for a small, modular-reactor project combined with a wind farm.

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