Government must share financial risk of nuclear plants The new report will, however, call for the establishment of a statutory Nuclear Policy Council to establish a long term road map for nuclear energy in the UK. It will also urge for greater incentives to encourage communities to host geological disposal sites for nuclear waste. It will say: "Rebuilding the UK as a suitably qualified nuclear nation, capable of building new stations and developing new technologies is a priority. The lack of certainty and clarity in the UK Government policy on energy, and the hiatus while the Electricity Market Reform bill is drafted and put into law, is producing a sense of drift in which energy companies lack the conviction to invest in new plant construction. The financial risks associated with building new nuclear power stations are beyond the balance sheets of many of the utilities. These risks need to be shared between the public and private sectors. The Birmingham Policy Commission, whose members include prominent nuclear scientists, energy experts and environmental advisers, was established in September last year by the University of Birmingham to explore the future of nuclear power in the UK. The report warns that by the time the current nuclear power stations reach the end of their lifetime in 2035, Britain will have lost around half of its ability to produce electricity as many coal fired power stations are also due to close within the next decade. Environmental campaigners last week were celebrating after plans to build the first new coal-fired power station in the UK for 40 years were abandoned following a campaign. The Commission's report will warn that while renewable energy can supply some of the shortfall, "one drawback of renewable energy sources is that they need a lot of space." Instead, it will say, the Government must make concrete plans for the role nuclear energy will play in the future of Britain's electricity supply. Lord Hunt said: "When you look at the challenge we face, I am convinced that nuclear has a strong role in the future. The longer you leave it, the longer it takes before you get new nuclear power stations up and running. The foundations have been laid for new nuclear power stations, but I think the worry is that the companies involved are reluctant to commit to investment. The Coalition Government recently announced plans to introduce a feed in tariff to help subsidise green energy. This will see consumers paying a premium on their electricity prices to help cover the higher costs of producing green energy. It is expected that nuclear power will also benefit from these green energy subsidies. The Commission's report will warn, however, that substantial up front sums will be needed to build new power stations and these consumer subsidies may not be enough. A nuclear power station costs an estimated £5 billion to build. The report will say: "In the current economic climate, the challenge is not simply predicting lifetime economics but also how to raise the billions needed up front." There has not been a new nuclear plant built in the UK for more than 20 year and there have been rumours of energy companies planning to pull out due to the lack of clarity on government energy policy. Earlier this month, however, EDF Energy awarded a £2 billion contract to start developing the design and building a new power station at Hinkely Point in Somerset. A spokesman for the Department of Energy and Climate Change said: "Nuclear is a mature technology and with our market reforms in place we don't believe there is a need for public subsidy."