DOCUMENT IS T H E P R O P E R T Y O F H E R BRITANNIC M A J E S T Y ' S G O V E R N M E N T )
C P . (64) 86
COPY NO.
CABINET
NUCLEAR POWER PROGRAMME:
1970-1975
N o t e by t h e S e c r e t a r y of t h e C a b i n e t
By d i r e c t i o n of t h e 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
w h i c h t h e 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 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 . T h e P r i m e M i n i s t e r w o u l d b e g l a d if m e m b e r s of
t h e C a b i n e t who a r e not m e m b e r s of 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
w o u l d r e g a r d t h e m s e l v e s a s i n c l u d e d in t h e C h a n c e l l o r s i n v i t a t i o n to
send h i m c o m m e n t s c n t h e d r a f t White P a p e r a t A n n e x II of t h e
m e m o r a n d u m , w i t h c o p i e s t o the 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 and
S c i e n c e , t h e M i n i s t e r of S t a t e for E d u c a t i o n a n d S c i e n c e (Sir E d w a r d
B o y l e ) a n d t h e M i n i s t e r of P o w e r , b y n o o n on M o n d a y , 13th A p r i l .
8
(Signed)
C a b i n e t Office,
S.W.1
10th A p r i l , 1964
BURKE TREND
(THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC" MAJESTY'S GOVERNMENT)
3 . P . ( 6 4 ) 51
132
9 t h A p r i l , 1964
COPY NO. ^
CABINET
ECONOMIC POLICY COMMITTEE
NUCLEAR POWER PROGRAMME
Memorandum by t h e C h a n c e l l o r of t h e Exchequer
Following d i s c u s s i o n i n t h e Committee (E.P..(.64) 14th Meeting,
Minute 3) I ha,ve had f u r t h e r d i s c u s s i o n s on t h e proposed White
Paper on t h e Nuclear Power Programme 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 Education and S c i e n c e , h i s M i n i s t e r of S t a t e and t h e
M i n i s t e r of Power. As my c o l l e a g u e s w i l l see from t h e a t t a c h e d
minute (Annex I ) which I have sent t o t h e Prime M i n i s t e r , we
have been a b l e t o agree on t h e l i n e which t h e White Paper
should t a k e . We a r e a l s o convinced t h a t i t i s n e c e s s a r y t h a t
t h e White Paper should be p u b l i s h e d as e a r l y a s p o s s i b l e next
week.
2.
We have agreed upon some amendments t o t h e t e x t of the
White P a p e r . I c i r c u l a t e i t now (Annex I I ) w i t h an i n v i t a t i o n
t o my c o l l e a g u e s on t h e Economic P o l i c y Committee t o send t o
us any amendments which t h e y t h i n k i t n e c e s s a r y t o s u g g e s t .
Would t h e y k i n d l y do so not l a t e r t h a n mid-day on Monday,
13th A p r i l ?
R.M.
T r e a s u r y Chambers, S.W.1
9 t h A p r i l , 1964
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
you t o l d
t h e House t h a t
you hoped t h a t
Government's conclusions
following
on t h e
1 7 t h March
an announcement
their
s t u d y of t h e
of
the
report
of
t h e P o w e l l C o m m i t t e e o n t h e N u c l e a r P o w e r P r o g r a m m e w o u l d b e made
immediately a f t e r
2.
the Easter
Recess.
On 2 5 t h M a r c h 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 c o n s i d e r e d
draft
White P a p e r .
This followed
by t h e P o w e l l C o m m i t t e e :
t h e main r e a c t o r
generally the
technical
Magnox s y s t e m w e r e l i k e l y t o
new s y s t e m s ;
and economic
t y p e s had l e d t o t h e
a d v a n t a g e s t o be g a i n e d by f u r t h e r
and t h a t
the
line
assessment
of t h e
be s m a l l e r t h a n t h o s e
programme;
nuclear
for
the continuance
capacity
six years
present
advanced gas-cooled r e a c t o r
of
s t a g e t o make a f i r m c h o i c e
but
it
one of
i n f o r m a t i o n had l a t e l y become a v a i l a b l e
power
commissioning
was i m p o s s i b l e
of a p a r t i c u l a r
the
5 . 0 0 0 MW o f
s h o u l d be a d o p t e d f o r
1970-75?
by
developed
our n u c l e a r
p l a n n i n g p u r p o s e s a programme of
generating
during the
for
of
economic
offered
by t h e Atomic 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
most p r o m i s i n g t y p e s
recommended
conclusion that the
development
a
system
at
this
because
about American
water­
moderated r e a c t o r s which were s a i d t o have lower c a p i t a l
costs
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
advanced
gas­
cooled r e a c t o r ;
obtain
from B r i t i s h
and t h e n e x t
industry for
advanced g a s - c o o l e d
the
latter
to
step
reactors
reactor
should be t o
tenders
of t w o d i f f e r e n t
systems,
and t h e w a t e r - m o d e r a t e d
reactor,
be m a n u f a c t u r e d
under licence
to
the
American
design.
3.
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 was t r o u b l e d
possibility
that
an announcement
contemplate
reactors
by
the
t h a t we w e r e w i l l i n g
of American d e s i g n would k i l l
to
the
/of
prospects
our
own
o f 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
the very substantial
sums of m o n e y w h i c h h a v e b e e n d e v o t e d
n u c l e a r power r e s e a r c h i n t h e p a s t .
at this
stage,
conventional
power s t a t i o n s
American a l t e r n a t i v e ,
In the light
Committee,
State for
the
even i f
choice
this
should
reactions
I have had f u r t h e r
i n t h e Economic
E d u c a t i o n and S c i e n c e and t h e M i n i s t e r
produced the following
(a)
plant
are themselves interested
reactor
station.
reactor
as a
offer
Policy
Secretary
of S t a t e
of P o w e r .
of
for
The M i n i s t e r
and i n our d i s c u s s i o n s
c o n s o r t i a which build
in water-moderated
i n any case t o
offer
to the Central E l e c t r i c i t y
and n o t t o
an
of
has
information:
The B r i t i s h i n d u s t r i a l
One of t h e m i n t e n d s
a
power.
the Minister
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
latest
l i e between
discussions with the
E d u c a t i o n and S c i e n c e ,
if,
w e r e more e x p e n s i v e t h a n
and c o n v e n t i o n a l
of t h e s e
to
that
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
B r i t i s h nuclear system,
4.
They t o o k t h e p o i n t
off
a tender for
Another intends to
reactors.
a tender for
Generating Board
such
submit a t e n d e r f o r
a
a
(C.E.G.B.),
an advanced gas-cooled
along with a tender for
nuclear
reactor
water-moderated
an advanced g a s - c o o l e d
reactor,
specula/tion.
(b)
The C . E . G . B .
intend
to invite
advanced gas-cooled r e a c t o r but for
tenders not merely for
a second as w e l l i n order
b r i n g out any r e d u c t i o n i n p r i c e which could be o b t a i n e d
b u y i n g more t h a n o n e .
for the
(c)
two s y s t e m s
It
of t h e two
i n t h e new p r o g r a m m e
s i m p l y i s no b a s i s
intended that
s h o u l d b e of
one t y p e :
all the
and i f
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
show b o t h t y p e s
for
systems.
is not'necessarily
s i n c e we c o u l d
tenders
comparable.
U n t i l we h a v e t e n d e r s t h e r e
judging the merits
(d)
T h i s should h e l p t o w a r d s making
by
reactors
both
types
industry,
operating.
/5.
In the
light
one
to
5.
In the light
concluded t h a t
right
one,
It
the
subject
in the text
the
of t h i s
line taken in the draft
to
attached.
even p o s s i b l e
preferred
for
invitations
6.
on t h e
that
in the
the time being,
and I
a n d we a r e
am a l s o
have asked them to
draft
arranging
E d u c a t i o n and S c i e n c e ,
not
later
his Minister
on W e d n e s d a y ,
w i l l be a b l e
to
say t h a t
for
the
the
revised
Policy
t h o s e members of
Committee t o be
Secretary
of
of
State,
and t h e
13th April.
t h e day a f t e r
on T u e s d a y ,
day.
the
consulted.
State
the
for
Minister
In
this
for
Budget
14th April,
the White Paper i s t o be
R.M.
1964
adopted.
that
i n t h e Economic
15th A p r i l ,
answer your Questions
9th April,
prejudging
course.
White Paper r e a d y
S o , w h e n you
on t h e f o l l o w i n g
out t h i s
t h a n n o o n on M o n d a y ,
way we i n t e n d t o h a v e t h e d r a f t
publication
as
s e n d a n y c o m m e n t s t h e y may h a v e o n
W h i t e P a p e r t o me a n d t o t h e
of Power,
satisfied
of t h i s m i n u t e a n d o f
C a b i n e t who a r e n o t m e m b e r s o f t h i s
I
the
e n d c o n v e n t i o n a l p o w e r may b e
t o t e n d e r would n o t r u l e
copies
text
s y s t e m o r s y s t e m s t o be
W h i t e P a p e r t o my c o l l e a g u e s
Committee,
have
White Paper i s
None of u s r e g a r d s t h i s
I am c i r c u l a t i n g
draft
and I
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
eventual decision
is
i n f o r m a t i o n my c o l l e a g u e s
piiblished
day.
you
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
s t a t i o n s under t h e p r e s e n t n u c l e a r power programme;
power
the
last
t h e m w a s o r d e r e d i n 1963 a n d w i l l b e c o m m i s s i o n e d i n 1 9 6 8 / 6 9 o
This White Paper
for
sets
o u t t h e programme w h i c h lias b e e n
planning purposes f o r commissioning
adopted
in the six years
1970 t o 1 9 7 5 ,
The P r e s e n t
2.
N u c l e a r Power
Programme
The n u c l e a r p o w e r p r o g r a m m e
Power"
(Cmdo 9 3 S 9 ) , w a s f i r s t
"A P r o g r a m m e o f
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 had been a prolonged
shortage
to
for the installation
continue.
Ifprovided
2 , 0 0 0 MW o f n u c l e a r
for
flexibility
1957,
of c o a l w h i c h was e x p e c t e d
to take account
also
of l a t e r
to provide for the i n s t a l l a t i o n
nuclear
power by 1965.
T h i s was announced
in the Coal,
By 1960 t h e s t r a i n
e a s e d and t h e p r o s p e c t s
capital
costs
stations
planned
i n t h e Appendix
to
Industrie
reduction
in the
s t a t i o n s from
about
i n 1955 t o a b o u t £37 p e r kW f o r
i n 1960 b e c a u s e
t h e u s e of l a r g e r u n i t s
pressures
and t e m p e r a t u r e s ;
reflected
i n lower running c o s t s .
cost
in
a l s o had improved.
of c o n v e n t i o n a l
permitted
relative
in Parliament
on o u r c o a l s u p p l i e s h a d
of o i l s u p p l i e s
£ 5 5 p e r kW f o r t h o s e p l a n n e d
t h e programme was
Gas a n d E l e c t r i c i t y
At 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
estimated
In
o f 5 , 0 0 0 - 6 , 0 0 0 MW o f
March, 1957, and d e t a i l s were g i v e n l a t e r
(Cmnd. 1 3 2 ) .
1,500­
developments.
seemed a t r i s k ,
trebled
Investment
of
c a p a c i t y by 1965, b u t emphasised t h e need
when o i l s u p p l i e s
"Capital
Nuclear
of t e c h n i c a l a d v a n c e s
employing higher
and t h e s e
steam
advances have
Moreover,
of n u c l e a r power h a d r i s e n
the
which
been
estimated
s i n c e 1955, n o t
because
the
of any change i n t e c h n i c a l a s s e s s m e n t ,
increased
rate
emphasis
of r e t u r n
rates
on t h e
on t h e c a p i t a l
and t h e r e d u c t i o n
result
it
appeared
in the
of
construction
in
importance
of e a r n i n g
investment,
the r i s e
credits for
5,000
about
The s e c o n d p a r t
of W y l f a ,
programme,
i s now e x p e c t e d
3.
are nine
gramme, a l l
of
the
the
Calder Hall,
The f i r s t
cult
as moderator
t h a n was o r i g i n a l l y
costs
of t h e
and t o t a l
of
a b o u t £180
technical
it.
1962/63
winter
costs
were
supply
and
under
w i l l p r o d u c e power
to cost
supplies
and t h e
during the
estimates
of t h e l a t e r
costs which are
conventional
stations
a b o u t £100
cost
of
-2CONF1DENT5AL
diffi'
capital
stations
show
and B r a d w e l l
cost
p e r kW.
1968
Against
of n u c l e a r p o w e r m u s t b e
s u b s t a n t i a l l y below t h o s e
a
all
a n d B e r k e l e y made a
thus whereas Berkeley
estimated
of
has achieved
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
is
at
the generation
standpoint,
to electricity
the relatively high capital
running
natural
and f o u r more a r e
expected,
Bradwell
generating
marked r e d u c t i o n s ;
a n d 1969,
the
the
carbon
and
two, Hinkley Point
Although these s t a t i o n s
contribution
period
They u s e
pro­
two, Bradwell and B e r k e l e y ,
Another
power, from
valuable
1969.
a n d H u n t e r s t o n h a s now b e g u n t o
the Grid.
t h a t was e x p e c t e d
first
developed by
Trawsfynydd, a r e n e a r i n g completion;
nuclear
in
the
Magnox t y p e i n i t i a l l y
i n 1962
cost
i960).
June,
s t a t i o n under
the
announced
in the present
graphite
a higher
in
expected.
commercial s t a t i o n s
gas as c o o l a n t ,
construction.
1083,
t o be completed
dioxide
power t o
As a
compete
This was
(Cmnd.
last
at
uranium as f u e l .
1968.
MW b y
Atomic Energy A u t h o r i t y
commissioned
interest
t h e programme was e x t e n d e d t o p r o v i d e f o r
of
of
proper
in
power as e a r l y a s had b e e n
"The N u c l e a r Power Programme"
There
a
plutonium.
t h a t n u c l e a r power would n o t
costs with conventional
The p e r i o d
but because
for
set
THE SECOND PROGRAMME Types
h.
of
Reactor
When 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 w a s
i n 1955j t h e Magnox r e a c t o r
Kingdom and u s i n g n a t u r a l
in advance
the
of o t h e r
system,
developed in the
(unenriched)
systems.
is
in this
country
a wider
s e v e r a l new t y p e s
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 ,
developed
United
uranium as f u e l ,
Now t h e r e
second programme, because
launched
and a b r o a d .
of
was
choice
for
reactor,
have been
intensively
The C e n t r a l
Electricity
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
joint
technical
and economic a s s e s s m e n t
t y p e s , namely developments
heavy water
system,
and o t h e r w a t e r
(A.G.R.),
of t h e Magnox s y s t e m ,
the American B o i l i n g Water Reactor
conclusion is
to be gained by the f u r t h e r
system are l i k e l y ,
Of t h e r e s t ,
in the
is
continuance
however,
accepted
advantages
the present
than those
offered
Magnox
in
b y new
of
as the
has been received
are
said
The e m e r g e n c e
that
systems.
t h a n t h o s e of
the A.G.R.,
consideration before
o f t h e s e new t y p e s
a firm
of r e a c t o r s
t h e Magnox t y p e s h o u l d b e r e g a r d e d
indeed the best-proved r e a c t o r
i n some c o n d i t i o n s
for
Recently,
costs,
and
large
as
C a n a d i a n D e u t e r i u m Uranium
Reactor
water
although
these
choice
is
does
obsolete;
stations
and
i t would s t i l l be t h e most a p p r o p r i a t e
available,
the
the
some A m e r i c a n
to have lower c a p i t a l
the
Magnox
the B r i t i s h n u c l e a r power programme.
information
n o t mean t h a t
t h e same c o n c e p t
a s o n e of t h e m o s t p r o m i s i n g f o r
reactors warrant further
is
Reactor
t h e Advanced Gas-Cooled R e a c t o r d e v e l o p e d by
higher running costs,
it
of
(B.W.R.)
c i r c u m s t a n c e s now p r e v a i l i n g
to he smaller
moderated r e a c t o r s
made.
t h a t t h e economic
development
Atomic Energy A u t h o r i t y from
reactor
reactor
t h e CANDU''
s y s t e m s , and t h e Advanced Gas-Cooled
Their
U n i t e d Kingdom,
of t h e m a i n
type
5.
The i n f o r m a t i o n
about
available reactor
systems
b e e n examined by t h e Government w i t h t h e Atomic
Authority
and t h e e l e c t r i c i t y
t h e Government a r e s a t i s f i e d
supply
that
is right
a s u b s t a n t i a l n u c l e a r power programme,
line
of d e v e l o p m e n t h a s
6-,
The C e n t r a l E l e c t r i c i t y
enquiry for
They w i l l
tenders for
ensure
7o
these
tenders
the
are
made;
at
choice
t h e same t i m e
of
8,
The u n i t
an
station,,
British
and
with
performance
They
will
basis,
of
this
to be
the further
of r e a c t o r
enquiry
in
built
orders for
the
a
consideration
cannot properly
i t will permit
and
be
new
stations
continuity
of work t o t h e
of
the
manu­
Programme
of t h e l o a d
stations,
other
e
industries.
Size
station
this
issue
submitted
of r e a c t o r
power programme and t h e flow
facturing
in
the supply industry
t o be p l a c e d promptly enough t o e n s u r e
nuclear
British
on a c o m p a r a b l e
the r e s u l t s
allow time for
without which a firm
is
are met.
judged
t y p e or types
This procedure w i l l
to play
safety
The Government w i l l r e v i e w w i t h
to decide
the
with
s y s t e m s of provecL Assign?
of
of t h e A . G , R .
t h e Atomic Energy A u t h o r i t y
order
continue
t e n d e r s from
reactor
and t h a t r e q u i r e m e n t s
that
result,
an Advanced G a s - C o o l e d R e a c t o r
supporting evidence
comparable with those
to
G e n e r a t i n g Board w i l l
industry for water-moderated
the tenders
As a
and t h a t
an i m p o r t a n t p a r t
also be ready to consider
provided that f u l l
Energy
industry.
it
has
c o s t of e l e c t r i c i t y
on t h e g e n e r a t i n g s y s t e m ,
the
cost
and t h e
costs
depends
of
cost
construction;,
of d i f f e r e n t
of o p e r a t i o n , ,
building alternative
of e l e c t r i c i t y
characteristics
t h e l o c a t i o n of
the
kinds
Comparisons
types
on t h e
assumed
of f u e l ,
of
life
power
of
in addition
the costs
of s t a t i o n s u s i n g d i f f e r e n t
g e n e r a t i o n must be based
-k­
the
on p a r t i c u l a r
to
of
methods
economic
and t e c h n i c a l
of
assumptions,
t h e b u r d e n of c o s t s
t h e whole g e n e r a t i n g
a n d may c o n v e y n o t r u e
of d i f f e r e n t
system.
m e t h o d s o f g e n e r a t i o n on
There
a r e many
about b o t h t h e economic and t e c h n i c a l
detailed
studies
economic p l a c e
in the British
than conventional
that,
cost,
but their
plants
assumptions used, b u t
electricity
thereafter,
i t w i l l become
of b a s e
are low.
power.
oil-fired
stations
from
important with
T o g e t h e r w i t h t h e Magnox s t a t i o n s
intensive
during
the 1990's.
of t h e f i r s t
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
portion
nuclear pro­
of t h e
nation's
capacity b u t should not exceed base-load
ments f o r t h e expected
electricity
qualification
i f new n u c l e a r p o w e r s t a t i o n s
is that,
1975 b e c a m e s o c h e a p i n c a p i t a l
purchase
of an e x t r e m e l y
p r e - 1 975 s t a t i o n s
new p o w e r
stations.
it
and r u n n i n g c o s t s
on t h e c o u n t r y ' s
to steer
t o an excessive
failing
t o take advantage
gramme i s l a r g e
that
cost
scarce
the
justified,
to
less
of t h e
of n u c l e a r power and
capital
resources,
a course between committing t h e
country
n u c l e a r power.
after
of t h e l o w e r r u n n i n g c o s t s
B e c a u s e of t h e h e a v y c a p i t a l
i s necessary
require­
The o n l y
of a l l t y p e s would b e d i s p l a c e d
service because
t h e many c a l l s
demand.
l a r g e p r o p o r t i o n were
intensive
10.
costs.
nuclear
t o be commissioned
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
generating
capital
costs, but higher running
is particularly
The n u c l e a r
load.
Coal and
The e c o n o m i c s of b o t h t y p e s of p l a n t b e n e f i t
running, but this
cheaper
a t p r e s e n t have a heavy
running costs
have lower c a p i t a l
t o have an
system by the early
power f o r t h e g e n e r a t i o n
Nuclear power s t a t i o n s
e
uncertainties
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
1970's and s u g g e s t
9
indication
immediate burden
of c a p i t a l
of t h e p r o s p e c t i v e
It is also necessary
c o s t s and
low t o t a l
to ensure that
the pro­
enough 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
sustain facilities
for rapid
expansion
in later
c o s t s of
years.
and t o
11,
In the l i g h t
of
the technical
i t h a s "been d e c i d e d ,
and. e c o n o m i c
i n agreement with the
concerned,
that for planning purposes
of n u c l e a r
generating
and Wales f o r
intended
reviewed at regular
tion.
The q u e s t i o n
will be
considered
those
later
C.9.h..6k
of
in the
stations
a further
of
and
nuclear
to enable
and economies
it will
of l a t e r
station
Reactors
be
informa­
in
to be
advantage
of
England
1970-75.
t h e p r o g r a m m e may b e l a r g e r
stations
in technology
six years
light
in these reviews.
in the earlier
of a d v a n c e s
s h o u l d "be a d o p t e d i n
to he f l e x i b l e
intervals
Authorities
a p r o g r a m m e of 5 , 0 0 0 MW
commissioning during the
The p r o g r a m m e i s
in the
capacity
assessments
scale.
Scotland
installed
than
to be
taken