The Government set out its vision for the future of energy supply yesterday and insisted that nuclear must remain part of the mix.

The twin threats of power shortages in a decade’s time and climate change mean Britain must embrace the nuclear option, said Alistair Darling, the Trade and Industry Secretary.

He said the most likely locations for new nuclear plants are on existing sites. A report commissioned by the Government, and released without fanfare yesterday, recommended four sites in southern Britain as the most suitable.

Proposals for a new generation of nuclear reactors were contained within the energy White Paper published yesterday and in a separate consultation document.

Ministers made it clear that despite agreeing to hold fresh consultations, they are firmly convinced of the need to replace aging nuclear plants with a new generation.

They pointed out in the documents that it was calculated that without nuclear power, Britain’s carbon emissions would have been 5-12 per cent higher than they were in 2004.

By 2023 all but one of the nuclear power stations now in operation will have reached the end of their predicted lifetimes, as will a number of fossil fuel power plants, leaving Britain with an estimated shortfall of up to 35 gigawatts in capacity within two decades.

Mr Darling said it was “more likely than not” that the new nuclear reactors he wants to see built will be constructed on the sites of existing plants.

A report that Greenpeace, the direct action environmental group, had demanded be published by the Government under freedom of information laws was made public yesterday. The report,Siting New Nuclear Power Stations: Availability and Options for Government by Jackson Consulting recommended Hinkley, Sizewell, Dungeness and Bradwell as the most suitable.

The Trade and Industry Secretary said of Britain’s energy sources: “I firmly believe that the mix we have will serve us well in the future. My view is that nuclear does need to be part of that – to exclude it as an option makes no sense at all.”

Alan Duncan, the Shadow Trade and Industry Secretary. observed, however, that however strongly the Government professed its commitment for new nuclear plants, it had yet to make any guarantees.

“Whatever their rhetoric, there is nothing in this White Paper that will guarantee that a single nuclear power station will ever be built,” he said.

Any new nuclear plants are expected to be built by private companies as investments, with the Government insisting that subsidies will not be on offer, but it was not clear yesterday what safeguards will be put in place to ensure that none of the clear-up costs are passed to the taxpayer. Decommissioning of nuclear plants has cost an estimated £56 billion and environmental groups are concerned about who would bear the cost of cleaning up radioactive waste if a private firm owning an ageing nuclear plant went bankrupt.

The consultation document was published at the same time as the energy White Paper, which outlined the measures that the Government plans to improve energy efficiency and security of supply. Measures contained within the White Paper were calculated to reduce carbon emissions by an estimated 23-33 million tonnes by 2020.

If the measures succeed in cutting close to 33 million tonnes the country is expected to reach its target of a minimum 26 per cent reduction by 2020, from 1990 levels. Electricity consumption would have been cut by 15 per cent and efficiency improved by 10 per cent, in addition to a 25 per cent improvement already taken into account.

Chief among the announcements was one revising the renewables obligation, under which energy suppliers are obliged to take a proportion of energy from renewable sources. The introduction of banding within the renewables obligation is designed to ensure developing green technologies such as offshore wind farms, and tidal and wave generators are given priority over established onshore wind turbines.

A scheme most likely to benefit from the changes is the £14 billion Severn Barrage project, which, if built, is expected to provide 5 per cent of the nation’s electricity. However, the barrage will face determined resistance from groups such as the RSPB, which is concerned about the impact on wildlife, especially wading birds. Environmental groups expressed horror at the prospect of more nuclear energy which, while low in the carbon emissions that drive climate change, produces radioactive waste.

Neil Crumpton, of Friends of the Earth, said it would “divert valuable resources from sustainable solutions for tackling climate change”.

Carbon capture and storage (CCS) technology, to stop fossil fuel power plants emitting the main greenhouse gas, is regarded as highly desirable. Mr Darling dismissed an accusation that the Government was dragging its heels: “We need to get it right,” he said. Government-sponsored trials of CCS equipment are expected to be announced by the end of the year.

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