UK Government and Hitachi should capitalise on fertile territory for energy project after suspension of Wylfa Newydd

COMMONS

UK Government and Hitachi should capitalise on fertile territory for energy project after suspension of Wylfa Newydd

Purpose of the inquiry

• The Welsh Affairs Committee conducted an inquiry into the implications of this suspension for the surrounding economy and for the UKs nuclear capabilities.
• It also calls on the UK and Welsh Governments to consider a range of possible future sustainable energy projects in North West Wales.

The report also recommends

Chair's comments

• Davies MP said: The development of the Wylfa Newydd site was vitally important to Anglesey and the whole of North West Wales, and the announcement that works would be suspended was a blow to local communities and the local economy.
• Our report calls for the Government to capitalise on these benefits by ensuring that a range of possible energy projects can be developed on the site.

Key conclusions and recommendations

Resuming works at Wylfa Newydd

• Throughout the inquiry, the Committee consistently heard that the site at Wylfa Newydd has distinct geological advantages that make it ideal for nuclear development. One witness even said that the site was understood to be “one of the best sites in west Europe, if not in the whole of Europe, for building nuclear power stations.” The Director of Nuclear Operations at Horizon – the subsidiary of Hitachi responsible for the redevelopment of the site next to the old Wylfa nuclear power station – also shared the view that the site had unique advantages.
  • The Committee therefore urges the UK and Welsh Governments to make every effort to ensure that works can resume on  the site, or alternative energy projects can be brought forward in the surrounding area such as a low carbon energy project.
  • The Committee also recommends that the Government’s analysis of the regulated asset base model (RAB) focus on whether it could resolve the Hitachi’s financing concerns around Wylfa Newydd.
  • The Committee recommends that if RAB could deliver nuclear at Wylfa Newydd, the Government should bring forward legislation to implement it.
  • The Committee recommends that if Hitachi is unwilling to resume works, the Government should prompt it to sell the site and help to encourage more willing developers to purchase it.

Providing high value jobs

• While Horizon has committed to supporting the 33 apprentices taken on to work at Wylfa Newydd, the Committee is concerned that their skills will be lost to North Wales if job opportunities in the energy sector are not available in the area.
  • The Committee therefore recommends that the benefits of the Trawsfynydd site are capitalised on through the development of a proposal for a small modular reactor to help sustain the local economy and retain the skills base.
  • The Committee heard that Trawsfynydd’s geological characteristics has the potential to bring high value jobs to the local economy.
  • The Committee urges the Government and Nuclear Decommissioning Authority to explore all opportunities for apprentices in the decommissioning of the old Wylfa and Trawfynydd reactors to help their skills stay in North Wales

Supporting the local economy