Torness nuclear power station has cut £2bn from electricity costs since 2021 gas crisis

Torness Nuclear Power Station near Dunbar | Scotsman

Torness nuclear power station saved Britain’s electricity system more than £2 billion since the 2021 energy crisis, according to industry analysis.

The study by the Nuclear Industry Association (NIA) showed that Scotland had saved £170 million, or roughly £27 per customer.

The analysis compares the East Lothian plant’s electricity output from Winter 2021 onwards with the cost of generating the same volume of electricity based on the Baseload Market Reference Price (BMRP). This is set principally by the price of imported gas.

Torness Nuclear Power Station near Dunbar | Scotsman

The study finds that nuclear generation at Torness has been more than £2 billion cheaper than the market baseload price over this period.

For Hunterston B, which came offline in January 2022, the figure is £114 million.

Torness is set to close in 2030. The UK Labour Government would like new small modular reactors at both Torness and Hunterston in North Ayrshire.

Energy is reserved to Westminster, but the Scottish Government has powers over planning.

This means the SNP has control over new nuclear in Scotland, which it has banned.

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Tom Greatrex, Chief Executive at the Nuclear Industry Association, said: “The latest gas shock is a reminder that we need more cheap, reliable, sovereign power that nuclear delivers. The Scottish Government should take this opportunity for a pragmatic reset of energy policy, following the example of countries all over northern Europe. Without nuclear, we remain exposed to gas imports, and that is in nobody’s interest.”

A global energy crisis began in winter 2021 after the Covid-19 pandemic. It was made worse by the Russian invasion of Ukraine in early 2022.

This caused people’s energy bills to drastically increase - although the Conservative Government provided financial support to all households.

Gas prices have recently skyrocketed again due to the war in Iran. Although UK energy bills have not yet risen because the price cap was set beforehand.

The Labour Government has said it will not roll out a universal system like the Tories did.

Elisabeth Roden, Policy Analyst at the Nuclear Industry Association, said: “This analysis highlights the real, measurable value nuclear power brings to Scotland. During a period of extreme gas price volatility, Torness has provided consistent, low-cost electricity, avoiding billions in additional system costs.

“With ongoing instability in the Middle East continuing to drive volatility in global gas markets, households and businesses remain exposed to price shocks. Nuclear is a vital hedge against fossil fuel price volatility, delivering stability when it’s needed most.”

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UK Energy Minister Michael Shanks said: “This analysis is a stark reminder that Torness nuclear power station saves Scottish households money while providing the reliable, low-carbon power our system depends on. Recent polling showed more than half of Scots back nuclear as the most popular form of energy generation in Scotland.

“Yet the SNP continues to oppose new nuclear, ignoring the clear evidence and leaving Scotland more exposed to volatile international gas markets. That is a clear political choice and it risks higher bills and weaker energy security for people across Scotland.

“This UK Labour Government won’t make that mistake. We’re backing nuclear alongside renewables to deliver secure, affordable, homegrown energy and protect consumers for the long term.”

A Scottish Government spokesperson said: “The Scottish Government does not support the creation of new nuclear reactors in Scotland, and is focused on supporting the development of Scotland’s renewable energy potential – which provides jobs, are safer and don’t leave a legacy of nuclear waste.

“The Scottish Government’s Climate Change Plan sets out that significant growth in renewables, storage and carbon capture provide the best pathway to net zero by 2045. It sets out the government’s vision of becoming less reliant on imported fuels and global fossil fuel markets, strengthening energy security, and producing the power needed to meet the increasing demand for clean electricity.”

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