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DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT) CP . (64) 86 COPY NO. CABINET NUCLEAR POWER PROGRAMME: 1970-1975 Note by the Secretary of the Cabinet By direction of the Prime Minister I circulate a memorandum which the Chancellor of the Exchequer has circulated to the Economic Policy Committee. The Prime Minister would be glad if members of the Cabinet who are not members of the Economic Policy Committee would regard themselves as included in the Chancellor 8 s invitation to send him comments cn the draft White Paper at Annex II of the memorandum, with copies to the Secretary of State for Education and Science, the Minister of State for Education and Science (Sir Edward Boyle) and the Minister of Power, by noon on Monday, 13th April. (Signed) BURKE TREND Cabinet Office, S.W.1 10th April, 1964

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Page 1: DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S ...filestore.nationalarchives.gov.uk/pdfs/small/cab-129-117-cp-86.pdf · The Present Nuclear Power Programme . 2. Th nucleaer power

DOCUMENT IS THE P R O P E R T Y OF HER BRITANNIC MAJESTY'S GOVERNMENT)

C P . (64) 86 COPY NO.

CABINET

NUCLEAR P O W E R P R O G R A M M E : 1970-1975

Note by the S e c r e t a r y of the Cabine t

By d i r e c t i o n of the P r i m e M i n i s t e r I c i r c u l a t e a m e m o r a n d u m which the C h a n c e l l o r of the E x c h e q u e r h a s c i r c u l a t e d t o the E c o n o m i c P o l i c y C o m m i t t e e . The P r i m e M i n i s t e r would be g lad if m e m b e r s of the Cab ine t who a r e not m e m b e r s of the E c o n o m i c P o l i c y C o m m i t t e e would r e g a r d t h e m s e l v e s as inc luded in the C h a n c e l l o r 8s inv i ta t ion to send h i m c o m m e n t s cn the d ra f t White P a p e r a t Annex II of the m e m o r a n d u m , with cop ie s to the S e c r e t a r y of S ta te for E d u c a t i o n and S c i e n c e , t he M i n i s t e r of S ta te for E d u c a t i o n and Sc i ence (Sir E d w a r d Boyle) and the M i n i s t e r of P o w e r , by noon on Monday , 13th A p r i l .

(Signed) BURKE T R E N D

Cabine t Office, S . W . 1

10th A p r i l , 1964

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(THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC" MAJESTY'S GOVERNMENT)

3 . P . ( 6 4 ) 51 132 9th A p r i l , 1964 COPY NO. ^

CABINET

ECONOMIC POLICY COMMITTEE

NUCLEAR POWER PROGRAMME

Memorandum by the Chancel lor of t he Exchequer

Following d i s c u s s i o n i n the Committee (E.P..( .64) 14th Meeting, Minute 3) I ha,ve had f u r t h e r d i s cus s ions on t h e proposed White Paper on the Nuclear Power Programme wi th the Sec re t a ry of S t a t e fo r Educat ion and Sc ience , h i s Min i s t e r of S t a t e and the M i n i s t e r of Power. As my co l l eagues w i l l see from the a t t ached minute (Annex I ) which I have sent to t h e Prime M i n i s t e r , we have been able t o agree on the l i n e which the White Paper should t a k e . We a r e a l s o convinced t h a t i t i s necessary t h a t the White Paper should be publ ished as e a r l y as p o s s i b l e next week.

2 . We have agreed upon some amendments to the t e x t of the White Paper . I c i r c u l a t e i t now (Annex I I ) wi th an i n v i t a t i o n t o my co l l eagues on the Economic Po l i cy Committee t o send to us any amendments which they t h i n k i t necessa ry t o sugges t . Would they k ind ly do so not l a t e r than mid-day on Monday, 13th Apr i l?

R.M.

Treasury Chambers, S.W.1

9 th A p r i l , 1964

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ANNEX 1

MINUTE BY THE CHANCELLOR OF THE EXCHEQUER TO THE PRIME MINISTER

THE NUCLEAR POWER PROGRAMME

I n a n s w e r -to a Q u e s t i o n b y Mr. P e n t l a n d on t h e 1 7 t h March

y o u t o l d t h e H o u s e t h a t y o u h o p e d t h a t a n a n n o u n c e m e n t of t h e

G o v e r n m e n t ' s c o n c l u s i o n s f o l l o w i n g t h e i r s t u d y o f t h e r e p o r t o f

t h e P o w e l l C o m m i t t e e on t h e N u c l e a r Power Programme w o u l d b e made

i m m e d i a t e l y a f t e r t h e E a s t e r R e c e s s .

2 . On 2 5 t h M a r c h t h e Economic P o l i c y C o m m i t t e e c o n s i d e r e d a

d r a f t W h i t e P a p e r . T h i s f o l l o w e d g e n e r a l l y t h e l i n e recommended

by t h e P o w e l l C o m m i t t e e : t e c h n i c a l and economic a s s e s s m e n t of

t h e m a i n r e a c t o r t y p e s h a d l e d t o t h e c o n c l u s i o n t h a t t h e e c o n o m i c

a d v a n t a g e s t o b e g a i n e d by f u r t h e r d e v e l o p m e n t of t h e p r e s e n t

Magnox s y s t e m w e r e l i k e l y t o be s m a l l e r t h a n t h o s e o f f e r e d b y

new s y s t e m s ; a n d t h a t t h e a d v a n c e d g a s - c o o l e d r e a c t o r d e v e l o p e d

by t h e A t o m i c E n e r g y A u t h o r i t y was l i k e l y t o p r o v e one o f t h e

m o s t p r o m i s i n g t y p e s f o r t h e c o n t i n u a n c e of o u r n u c l e a r p o w e r

p r o g r a m m e ; f o r p l a n n i n g p u r p o s e s a p rogramme of 5 . 0 0 0 MW of

n u c l e a r g e n e r a t i n g c a p a c i t y s h o u l d be a d o p t e d f o r c o m m i s s i o n i n g

d u r i n g t h e s i x y e a r s 1 9 7 0 - 7 5 ? b u t i t was i m p o s s i b l e a t t h i s

s t a g e t o make a f i r m c h o i c e o f a p a r t i c u l a r s y s t e m b e c a u s e

i n f o r m a t i o n h a d l a t e l y become a v a i l a b l e a b o u t A m e r i c a n w a t e r ­

m o d e r a t e d r e a c t o r s w h i c h w e r e s a i d t o h a v e l o w e r c a p i t a l c o s t s

a l t h o u g h h i g h e r r u n n i n g c o s t s t h a n t h o s e of t h e a d v a n c e d g a s ­

c o o l e d r e a c t o r ; a n d t h e n e x t s t e p s h o u l d b e t o o b t a i n t e n d e r s

f r om B r i t i s h i n d u s t r y f o r r e a c t o r s of two d i f f e r e n t s y s t e m s , t h e

a d v a n c e d g a s - c o o l e d r e a c t o r a n d t h e w a t e r - m o d e r a t e d r e a c t o r ,

t h e l a t t e r t o be m a n u f a c t u r e d u n d e r l i c e n c e t o A m e r i c a n

d e s i g n .

3 . The E c o n o m i c P o l i c y C o m m i t t e e was t r o u b l e d b y t h e

p o s s i b i l i t y t h a t a n a n n o u n c e m e n t t h a t we w e r e w i l l i n g t o

c o n t e m p l a t e r e a c t o r s o f A m e r i c a n d e s i g n w o u l d k i l l t h e p r o s p e c t s

/ o f o u r own

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of o u r own n u c l e a r p o w e r i n d u s t r y a n d i n v o l v e u s i n w r i t i n g o f f

t h e v e r y s u b s t a n t i a l sums of money w h i c h h a v e b e e n d e v o t e d t o

n u c l e a r p o w e r r e s e a r c h i n t h e p a s t . T h e y t o o k t h e p o i n t t h a t i f ,

a t t h i s s t a g e , no n u c l e a r s y s t e m was c o m p e t i t i v e w i t h t h e l a t e s t

c o n v e n t i o n a l p o w e r s t a t i o n s t h e c h o i c e s h o u l d l i e b e t w e e n a

B r i t i s h n u c l e a r s y s t e m , e v e n i f t h i s w e r e more e x p e n s i v e t h a n a n

A m e r i c a n a l t e r n a t i v e , a n d c o n v e n t i o n a l p o w e r .

4 . I n t h e l i g h t o f t h e s e r e a c t i o n s i n t h e Economic P o l i c y

C o m m i t t e e , I h a v e h a d f u r t h e r d i s c u s s i o n s w i t h t h e S e c r e t a r y of

S t a t e f o r E d u c a t i o n a n d S c i e n c e , t h e M i n i s t e r o f S t a t e f o r

E d u c a t i o n a n d S c i e n c e and t h e M i n i s t e r of P o w e r . T h e M i n i s t e r o f

Power h a s b e e n p u r s u i n g e n q u i r i e s a n d i n o u r d i s c u s s i o n s h a s

p r o d u c e d t h e f o l l o w i n g i n f o r m a t i o n :

( a ) The B r i t i s h i n d u s t r i a l c o n s o r t i a w h i c h b u i l d n u c l e a r

p l a n t a r e t h e m s e l v e s i n t e r e s t e d i n w a t e r - m o d e r a t e d r e a c t o r s .

One of t h e m i n t e n d s i n a n y c a s e t o o f f e r a t e n d e r f o r s u c h a

r e a c t o r t o t h e C e n t r a l E l e c t r i c i t y G e n e r a t i n g B o a r d ( C . E . G . B . ) ,

and n o t t o o f f e r a t e n d e r f o r a n a d v a n c e d g a s - c o o l e d r e a c t o r

s t a t i o n . A n o t h e r i n t e n d s t o s u b m i t a t e n d e r f o r a w a t e r - m o d e r a t e d

r e a c t o r a l o n g w i t h a t e n d e r f o r a n a d v a n c e d g a s - c o o l e d r e a c t o r ,

a s a s p e c u l a / t i o n .

( b ) The C . E . G . B . i n t e n d t o i n v i t e t e n d e r s n o t m e r e l y f o r one

a d v a n c e d g a s - c o o l e d r e a c t o r b u t f o r a s e c o n d a s w e l l i n o r d e r t o

b r i n g o u t a n y r e d u c t i o n i n p r i c e w h i c h c o u l d b e o b t a i n e d b y

b u y i n g more t h a n o n e . T h i s s h o u l d h e l p t o w a r d s m a k i n g t e n d e r s

f o r t h e two s y s t e m s c o m p a r a b l e .

( c ) U n t i l we h a v e t e n d e r s t h e r e s i m p l y i s no b a s i s f o r

j u d g i n g t h e m e r i t s o f t h e two s y s t e m s .

( d ) I t i s n o t ' n e c e s s a r i l y i n t e n d e d t h a t a l l t h e r e a c t o r s

i n t h e new p rog ramme s h o u l d b e of one t y p e : a n d i f b o t h t y p e s

were r u n n i n g i n B r i t a i n t h i s m i g h t h e l p o u r e x p o r t i n d u s t r y ,

s i n c e we c o u l d show b o t h t y p e s o p e r a t i n g .

/ 5 . I n t h e l i g h t

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5 . I n t h e l i g h t o f t h i s i n f o r m a t i o n my c o l l e a g u e s a n d I h a v e

c o n c l u d e d t h a t t h e l i n e t a k e n i n t h e d r a f t W h i t e P a p e r i s t h e

r i g h t o n e , s u b j e c t t o some m i n o r a m e n d m e n t s w h i c h we h a v e made

i n t h e t e x t a t t a c h e d . None of u s r e g a r d s t h i s t e x t a s p r e j u d g i n g

t h e e v e n t u a l d e c i s i o n on t h e s y s t e m o r s y s t e m s t o be a d o p t e d .

I t i s e v e n p o s s i b l e t h a t i n t h e end c o n v e n t i o n a l p o w e r may b e

p r e f e r r e d f o r t h e t i m e b e i n g , a n d we a r e s a t i s f i e d t h a t t h e

i n v i t a t i o n s t o t e n d e r w o u l d n o t r u l e o u t t h i s c o u r s e .

6 . I am c i r c u l a t i n g c o p i e s of t h i s m i n u t e a n d of t h e r e v i s e d

d r a f t W h i t e P a p e r t o my c o l l e a g u e s i n t h e E c o n o m i c P o l i c y

C o m m i t t e e , a n d I am a l s o a r r a n g i n g f o r t h o s e members of t h e

C a b i n e t who a r e n o t members of t h i s C o m m i t t e e t o be c o n s u l t e d .

I h a v e a s k e d t h e m t o s e n d a n y comment s t h e y may h a v e on t h e

d r a f t W h i t e P a p e r t o me a n d t o t h e S e c r e t a r y o f S t a t e f o r

E d u c a t i o n a n d S c i e n c e , h i s M i n i s t e r o f S t a t e , a n d t h e M i n i s t e r

o f P o w e r , n o t l a t e r t h a n n o o n on M o n d a y , 1 3 t h A p r i l . I n t h i s

way we i n t e n d t o h a v e t h e d r a f t W h i t e P a p e r r e a d y f o r

p u b l i c a t i o n on W e d n e s d a y , 1 5 t h A p r i l , t h e d a y a f t e r B u d g e t d a y .

S o , when you a n s w e r y o u r Q u e s t i o n s on T u e s d a y , 1 4 t h A p r i l , y o u

w i l l b e a b l e t o s a y t h a t t h e W h i t e P a p e r i s t o b e p i i b l i s h e d

on t h e f o l l o w i n g d a y .

R . M .

9 t h A p r i l , 1964

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ANNEX I I

DRAFT WHITE PAPER

THE SBCQNP..MJCIME-PWM.^PQRAMME

O r d e r s h a v e now b e e n p l a c e d f o r a l l t h e n u c l e a r p o w e r

s t a t i o n s u n d e r t h e p r e s e n t n u c l e a r p o w e r p r o g r a m m e ; t h e l a s t

t h e m w a s o r d e r e d i n 1963 and w i l l b e c o m m i s s i o n e d i n 1968/69o

T h i s W h i t e P a p e r s e t s o u t t h e p r o g r a m m e w h i c h l i a s b e e n a d o p t e d

f o r p l a n n i n g p u r p o s e s f o r c o m m i s s i o n i n g i n t h e s i x y e a r s

1970 t o 1 9 7 5 ,

The P r e s e n t N u c l e a r Power Programme

2 . The n u c l e a r power p rog ramme "A P r o g r a m m e of N u c l e a r

P o w e r " (Cmdo 9 3 S 9 ) , was f i r s t p r e p a r e d i n 1 9 5 5 , a t a t i m e when

t h e r e h a d b e e n a p r o l o n g e d s h o r t a g e o f c o a l w h i c h was e x p e c t e d

t o c o n t i n u e . I f p r o v i d e d f o r t h e i n s t a l l a t i o n of 1,500­2 ,000 MW of n u c l e a r c a p a c i t y b y 1 9 6 5 , b u t e m p h a s i s e d t h e n e e d

f o r f l e x i b i l i t y t o t a k e a c c o u n t of l a t e r d e v e l o p m e n t s . I n

1957 , when o i l s u p p l i e s a l s o s e e m e d a t r i s k , t h e p r o g r a m m e w a s

t r e b l e d t o p r o v i d e f o r t h e i n s t a l l a t i o n of 5 , 0 0 0 - 6 , 0 0 0 MW of

n u c l e a r p o w e r b y 1 9 6 5 . T h i s was a n n o u n c e d i n P a r l i a m e n t i n

M a r c h , 1 9 5 7 , and d e t a i l s w e r e g i v e n l a t e r i n t h e A p p e n d i x t o

" C a p i t a l I n v e s t m e n t i n t h e C o a l , Gas and E l e c t r i c i t y I n d u s t r i e

(Cmnd. 1 3 2 ) . By 1960 t h e s t r a i n on o u r c o a l s u p p l i e s h a d

e a s e d and t h e p r o s p e c t s o f o i l s u p p l i e s a l s o h a d i m p r o v e d .

A t t h e same t i m e t h e r e was a s u b s t a n t i a l r e d u c t i o n i n t h e

e s t i m a t e d c a p i t a l c o s t s of c o n v e n t i o n a l s t a t i o n s f r o m a b o u t

£55 p e r kW f o r t h o s e p l a n n e d i n 1955 t o a b o u t £37 p e r kW f o r

s t a t i o n s p l a n n e d i n 1960 b e c a u s e of t e c h n i c a l a d v a n c e s w h i c h

p e r m i t t e d t h e u s e of l a r g e r u n i t s e m p l o y i n g h i g h e r s t e a m

p r e s s u r e s a n d t e m p e r a t u r e s ; and t h e s e a d v a n c e s h a v e b e e n

r e f l e c t e d i n l o w e r r u n n i n g c o s t s . M o r e o v e r , t h e e s t i m a t e d

r e l a t i v e c o s t o f n u c l e a r p o w e r h a d r i s e n s i n c e 1 9 5 5 , n o t

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b e c a u s e o f a n y c h a n g e i n t e c h n i c a l a s s e s s m e n t , b u t b e c a u s e o f

t h e i n c r e a s e d e m p h a s i s on t h e i m p o r t a n c e of e a r n i n g a p r o p e r

r a t e of r e t u r n on t h e c a p i t a l i n v e s t m e n t , t h e r i s e i n i n t e r e s t

r a t e s a n d t h e r e d u c t i o n i n t h e c r e d i t s f o r p l u t o n i u m . As a

r e s u l t i t a p p e a r e d t h a t n u c l e a r p o w e r w o u l d n o t c o m p e t e i n

c o s t s w i t h c o n v e n t i o n a l p o w e r a s e a r l y a s h a d b e e n e x p e c t e d .

The p e r i o d of t h e p r o g r a m m e w a s e x t e n d e d t o p r o v i d e f o r t h e

c o n s t r u c t i o n of a b o u t 5,000 MW b y 1968. T h i s w a s a n n o u n c e d

i n "The N u c l e a r Power P r o g r a m m e " (Cmnd. 1083, J u n e , i960) .

The s e c o n d p a r t of W y l f a , t h e l a s t s t a t i o n u n d e r t h e f i r s t

p r o g r a m m e , i s now e x p e c t e d t o b e c o m p l e t e d i n 1969.

3 . T h e r e a r e n i n e c o m m e r c i a l s t a t i o n s i n t h e p r e s e n t p r o ­

g ramme , a l l o f t h e Magnox t y p e i n i t i a l l y d e v e l o p e d b y t h e

A t o m i c E n e r g y A u t h o r i t y a t C a l d e r H a l l , They u s e c a r b o n

d i o x i d e g a s a s c o o l a n t , g r a p h i t e a s m o d e r a t o r a n d n a t u r a l

u r a n i u m a s f u e l . The f i r s t t w o , B r a d w e l l a n d B e r k e l e y , w e r e

c o m m i s s i o n e d i n 1962 a n d H u n t e r s t o n h a s now b e g u n t o s u p p l y

p o w e r t o t h e G r i d . A n o t h e r t w o , H i n k l e y P o i n t a n d

T r a w s f y n y d d , a r e n e a r i n g c o m p l e t i o n ; a n d f o u r m o r e a r e u n d e r

c o n s t r u c t i o n . A l t h o u g h t h e s e s t a t i o n s w i l l p r o d u c e p o w e r a t

a h i g h e r c o s t t h a n w a s o r i g i n a l l y e x p e c t e d , t h e g e n e r a t i o n of

n u c l e a r p o w e r , f r o m t h e t e c h n i c a l s t a n d p o i n t , h a s a c h i e v e d a l l

t h a t w a s e x p e c t e d of i t . B r a d w e l l a n d B e r k e l e y made a

v a l u a b l e c o n t r i b u t i o n t o e l e c t r i c i t y s u p p l i e s d u r i n g t h e d i f f i '

c u l t p e r i o d of t h e 1962/63 w i n t e r and t h e e s t i m a t e s of c a p i t a l

c o s t s a n d t o t a l g e n e r a t i n g c o s t s of t h e l a t e r s t a t i o n s show

m a r k e d r e d u c t i o n s ; t h u s w h e r e a s B e r k e l e y and B r a d w e l l c o s t

a b o u t £180 p e r kW, W y l f a , w h i c h w i l l b e c o m m i s s i o n e d i n 1968

a n d 1969, i s e s t i m a t e d t o c o s t a b o u t £100 p e r kW. A g a i n s t

t h e r e l a t i v e l y h i g h c a p i t a l c o s t of n u c l e a r p o w e r m u s t b e s e t

r u n n i n g c o s t s w h i c h a r e s u b s t a n t i a l l y b e l o w t h o s e f o r

c o n v e n t i o n a l s t a t i o n s a

- 2 -

CONF1DENT5AL

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THE SECOND PROGRAMME

T y p e s of R e a c t o r

h . When t h e B r i t i s h n u c l e a r power p r o g r a m m e was l a u n c h e d

i n 1955j t h e Magnox r e a c t o r s y s t e m , d e v e l o p e d i n t h e U n i t e d

Kingdom a n d u s i n g n a t u r a l ( u n e n r i c h e d ) u r a n i u m a s f u e l , w a s

i n a d v a n c e of o t h e r s y s t e m s . Now t h e r e i s a w i d e r c h o i c e f o r

t h e s e c o n d p r o g r a m m e , b e c a u s e s e v e r a l new t y p e s of r e a c t o r ,

m o s t of w h i c h u s e e n r i c h e d u r a n i u m f u e l s , h a v e b e e n i n t e n s i v e l y

d e v e l o p e d i n t h i s c o u n t r y and a b r o a d . The C e n t r a l E l e c t r i c i t y

G e n e r a t i n g B o a r d a n d t h e A t o m i c E n e r g y A u t h o r i t y h a v e made a

j o i n t t e c h n i c a l and e c o n o m i c a s s e s s m e n t of t h e m a i n r e a c t o r

t y p e s , n a m e l y d e v e l o p m e n t s of t h e Magnox s y s t e m , t h e CANDU''

h e a v y w a t e r s y s t e m , t h e A m e r i c a n B o i l i n g W a t e r R e a c t o r ( B . W . R . )

a n d o t h e r w a t e r s y s t e m s , a n d t h e A d v a n c e d G a s - C o o l e d R e a c t o r

( A . G . R . ) , T h e i r c o n c l u s i o n i s t h a t t h e e c o n o m i c a d v a n t a g e s

t o b e g a i n e d b y t h e f u r t h e r d e v e l o p m e n t o f t h e p r e s e n t Magnox

s y s t e m a r e l i k e l y , i n t h e c i r c u m s t a n c e s now p r e v a i l i n g i n t h e

U n i t e d K ingdom, t o h e s m a l l e r t h a n t h o s e o f f e r e d b y new s y s t e m s .

Of t h e r e s t , t h e A d v a n c e d G a s - C o o l e d R e a c t o r d e v e l o p e d b y t h e

A t o m i c E n e r g y A u t h o r i t y f rom t h e same c o n c e p t a s t h e Magnox

r e a c t o r i s a c c e p t e d a s one of t h e m o s t p r o m i s i n g f o r t h e

c o n t i n u a n c e of t h e B r i t i s h n u c l e a r p o w e r p r o g r a m m e . R e c e n t l y ,

h o w e v e r , i n f o r m a t i o n h a s b e e n r e c e i v e d t h a t some A m e r i c a n w a t e r

m o d e r a t e d r e a c t o r s a r e s a i d t o h a v e l o w e r c a p i t a l c o s t s , a l t h o u g h

h i g h e r r u n n i n g c o s t s , t h a n t h o s e of t h e A . G . R . , and t h e s e

r e a c t o r s w a r r a n t f u r t h e r c o n s i d e r a t i o n b e f o r e a f i r m c h o i c e i s

m a d e . The e m e r g e n c e of t h e s e new t y p e s of r e a c t o r s d o e s

n o t mean t h a t t h e Magnox t y p e s h o u l d b e r e g a r d e d a s o b s o l e t e ;

i t i s i n d e e d t h e b e s t - p r o v e d r e a c t o r f o r l a r g e s t a t i o n s a n d

i n some c o n d i t i o n s i t w o u l d s t i l l b e t h e mos t a p p r o p r i a t e t y p e

a v a i l a b l e ,

C a n a d i a n D e u t e r i u m Uran ium R e a c t o r

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5 . The i n f o r m a t i o n a b o u t a v a i l a b l e r e a c t o r s y s t e m s h a s

b e e n e x a m i n e d b y t h e G o v e r n m e n t w i t h t h e A t o m i c E n e r g y

A u t h o r i t y a n d t h e e l e c t r i c i t y s u p p l y i n d u s t r y . As a r e s u l t ,

t h e G o v e r n m e n t a r e s a t i s f i e d t h a t i t i s r i g h t t o c o n t i n u e w i t h

a s u b s t a n t i a l n u c l e a r power p r o g r a m m e , and t h a t t h e B r i t i s h

l i n e of d e v e l o p m e n t h a s an i m p o r t a n t p a r t t o p l a y i n t h i s e

6-, The C e n t r a l E l e c t r i c i t y G e n e r a t i n g B o a r d w i l l i s s u e a n

e n q u i r y f o r t e n d e r s f o r an A d v a n c e d G a s - C o o l e d R e a c t o r s t a t i o n , ,

They w i l l a l s o b e r e a d y t o c o n s i d e r t e n d e r s f rom B r i t i s h

i n d u s t r y f o r w a t e r - m o d e r a t e d r e a c t o r s y s t e m s of provecL Assign?

p r o v i d e d t h a t f u l l s u p p o r t i n g e v i d e n c e i s s u b m i t t e d w i t h

t h e t e n d e r s and t h a t r e q u i r e m e n t s of s a f e t y and p e r f o r m a n c e

c o m p a r a b l e w i t h t h o s e of t h e A . G , R . a r e m e t . They w i l l

e n s u r e t h a t t h e s e t e n d e r s a r e j u d g e d on a c o m p a r a b l e b a s i s ,

7o The G o v e r n m e n t w i l l r e v i e w w i t h t h e s u p p l y i n d u s t r y and

t h e A t o m i c E n e r g y A u t h o r i t y t h e r e s u l t s of t h i s e n q u i r y i n

o r d e r t o d e c i d e t h e t y p e o r t y p e s of r e a c t o r t o b e b u i l t a

T h i s p r o c e d u r e w i l l a l l o w t i m e f o r t h e f u r t h e r c o n s i d e r a t i o n

w i t h o u t w h i c h a f i r m c h o i c e of r e a c t o r c a n n o t p r o p e r l y b e

m a d e ; a t t h e same t i m e i t w i l l p e r m i t o r d e r s f o r new s t a t i o n s

t o b e p l a c e d p r o m p t l y e n o u g h t o e n s u r e t h e c o n t i n u i t y of t h e

n u c l e a r p o w e r p r o g r a m m e a n d t h e f l o w of work t o t h e m a n u ­

f a c t u r i n g i n d u s t r i e s .

S i z e of P rogramme

8 , The u n i t c o s t o f e l e c t r i c i t y d e p e n d s on t h e c h a r a c t e r i s t i c s

of t h e l o a d on t h e g e n e r a t i n g s y s t e m , t h e l o c a t i o n of p o w e r

s t a t i o n s , t h e c o s t of c o n s t r u c t i o n ; , t h e a s s u m e d l i f e of t h e

s t a t i o n a n d t h e c o s t of d i f f e r e n t k i n d s o f f u e l , i n a d d i t i o n t o

o t h e r c o s t s of o p e r a t i o n , , C o m p a r i s o n s o f t h e c o s t s of

b u i l d i n g a l t e r n a t i v e t y p e s of s t a t i o n s u s i n g d i f f e r e n t m e t h o d s

of e l e c t r i c i t y g e n e r a t i o n m u s t b e b a s e d on p a r t i c u l a r e c o n o m i c

- k ­

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a n d t e c h n i c a l a s s u m p t i o n s , and may c o n v e y n o t r u e i n d i c a t i o n

of t h e b u r d e n of c o s t s of d i f f e r e n t m e t h o d s of g e n e r a t i o n on

t h e w h o l e g e n e r a t i n g s y s t e m . T h e r e a r e many u n c e r t a i n t i e s

a b o u t b o t h t h e e c o n o m i c a n d t e c h n i c a l a s s u m p t i o n s u s e d , b u t

d e t a i l e d s t u d i e s show t h a t n u c l e a r p o w e r i s l i k e l y t o h a v e an

e c o n o m i c p l a c e i n t h e B r i t i s h e l e c t r i c i t y s y s t e m b y t h e e a r l y

1 9 7 0 ' s and s u g g e s t t h a t , t h e r e a f t e r , i t w i l l b e c o m e c h e a p e r

t h a n c o n v e n t i o n a l power f o r t h e g e n e r a t i o n of b a s e l o a d .

9 N u c l e a r p o w e r s t a t i o n s a t p r e s e n t h a v e a h e a v y c a p i t a l e

c o s t , b u t t h e i r r u n n i n g c o s t s a r e l o w . C o a l a n d o i l - f i r e d

p l a n t s h a v e l o w e r c a p i t a l c o s t s , b u t h i g h e r r u n n i n g c o s t s .

The e c o n o m i c s o f b o t h t y p e s o f p l a n t b e n e f i t f r o m i n t e n s i v e

r u n n i n g , b u t t h i s i s p a r t i c u l a r l y i m p o r t a n t w i t h n u c l e a r

p o w e r . The n u c l e a r s t a t i o n s t o b e c o m m i s s i o n e d d u r i n g

1970-1975 w i l l b e i n u s e a t l e a s t u n t i l t h e 1 9 9 0 ' s .

T o g e t h e r w i t h t h e Magnox s t a t i o n s o f t h e f i r s t n u c l e a r p r o ­

gramme t h e y w i l l f o r m a s i g n i f i c a n t p o r t i o n of t h e n a t i o n ' s

g e n e r a t i n g c a p a c i t y b u t s h o u l d n o t e x c e e d b a s e - l o a d r e q u i r e ­

m e n t s f o r t h e e x p e c t e d e l e c t r i c i t y d e m a n d . The o n l y

q u a l i f i c a t i o n i s t h a t , i f new n u c l e a r p o w e r s t a t i o n s a f t e r

1975 b e c a m e s o c h e a p i n c a p i t a l and r u n n i n g c o s t s t h a t t h e

p u r c h a s e o f an e x t r e m e l y l a r g e p r o p o r t i o n w e r e j u s t i f i e d ,

p r e - 1 975 s t a t i o n s of a l l t y p e s w o u l d b e d i s p l a c e d t o l e s s

i n t e n s i v e s e r v i c e b e c a u s e of t h e l o w e r r u n n i n g c o s t s of t h e

new p o w e r s t a t i o n s .

10 . B e c a u s e of t h e h e a v y c a p i t a l c o s t o f n u c l e a r p o w e r and

t h e many c a l l s on t h e c o u n t r y ' s s c a r c e c a p i t a l r e s o u r c e s ,

i t i s n e c e s s a r y t o s t e e r a c o u r s e b e t w e e n c o m m i t t i n g t h e

c o u n t r y t o a n e x c e s s i v e i m m e d i a t e b u r d e n of c a p i t a l c o s t s and

f a i l i n g t o t a k e a d v a n t a g e of t h e p r o s p e c t i v e l o w t o t a l c o s t s of

n u c l e a r p o w e r . I t i s a l s o n e c e s s a r y t o e n s u r e t h a t t h e p r o ­

gramme i s l a r g e e n o u g h t o p r o v i d e a d e q u a t e e x p e r i e n c e a n d t o

s u s t a i n f a c i l i t i e s f o r r a p i d e x p a n s i o n i n l a t e r y e a r s .

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1 1 , I n t h e l i g h t of t h e t e c h n i c a l and. e c o n o m i c a s s e s s m e n t s

i t h a s "been d e c i d e d , i n a g r e e m e n t w i t h t h e A u t h o r i t i e s

c o n c e r n e d , t h a t f o r p l a n n i n g p u r p o s e s a p r o g r a m m e of 5 , 0 0 0 MW

of n u c l e a r g e n e r a t i n g c a p a c i t y s h o u l d "be a d o p t e d i n E n g l a n d

and W a l e s f o r c o m m i s s i o n i n g d u r i n g t h e s i x y e a r s 1 9 7 0 - 7 5 .

The p r o g r a m m e i s i n t e n d e d t o h e f l e x i b l e and i t w i l l b e

r e v i e w e d a t r e g u l a r i n t e r v a l s i n t h e l i g h t of l a t e r i n f o r m a ­

t i o n . The q u e s t i o n o f a f u r t h e r n u c l e a r s t a t i o n i n S c o t l a n d

w i l l b e c o n s i d e r e d i n t h e s e r e v i e w s . R e a c t o r s t o b e i n s t a l l e d

i n t h e l a t e r s t a t i o n s of t h e p r o g r a m m e may b e l a r g e r t h a n

t h o s e i n t h e e a r l i e r s t a t i o n s t o e n a b l e a d v a n t a g e t o b e t a k e n

of a d v a n c e s i n t e c h n o l o g y a n d e c o n o m i e s of s c a l e .

C . 9 . h . . 6 k

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