What stimulants and impediments exist in the application of the Private Finance Initiative to provide better value for money in nuclear energy generation in the United Kingdom?

Cadman, DM

Abstract

In February 2003 the Government issued a White Paper reviewing energy
policy. Diminishing indigenous natural supplies, the loss of the United
Kingdom's nuclear energy generation capacity, with the exception of the
Sizewell B nuclear power station, by 2020 and an increase in both local and
global demand for energy are leading toward an energy crisis. The
Government must reduce greenhouse gas emissions by 60% of their 1990
levels by 2050; this means the required additional energy capacity should not
be achieved by burning further fossil fuels. Renewable sources of energy are
not either sufficiently technologically advanced or economically viable to
account for the approaching shortfall. New nuclear energy generation facilities
could potentially generate the required energy without increasing greenhouse
gas emissions. An innovative solution to create economically viable, value for
money nuclear energy generation facilities is required. The Private Finance
Initiative is a procurement model aimed at providing value for money and the
efficient allocation of risk within a project. Through the use of an extensive
literature review and two semi-structured interviews a theoretical model was
developed and refined to show what stimulants and impediments exist in the
application of the Private Finance Initiative to provide better value for money in
nuclear energy generation. The main stimulants to the PFI and its use in
nuclear energy generation are the ability of nuclear to provide affordable,
reliable and secure, environmentally acceptable energy and with the use of PFI
achieve those aims through competitive markets, thereby meeting the aims of
the White Paper. The main impediments include current political uncertainty
over licensing and approvals of new nuclear plants, uncertainty over waste
policy and an overall uncertainty over the future of the industry itself.

Citation

Cadman, D. What stimulants and impediments exist in the application of the Private Finance Initiative to provide better value for money in nuclear energy generation in the United Kingdom?. (Thesis). Salford : University of Salford

• Thesis Type: Thesis
• Deposit Date: Oct 3, 2012
• Award Date: Jan 1, 2005