British nuclear decision likely to help sway others

By Barbara Lewis - Analysis

LONDON (Reuters) - Britain is expected on Thursday to back a new generation of nuclear power plants, adding to the gathering momentum behind atomic energy as part of the solution to the world's energy problems.

Already, countries like France and Finland are building new nuclear plants and, in the United States, companies have begun filing applications for operating licences.

Even without a government go-ahead, there would be nothing in theory to stop new nuclear plants being constructed in Britain.

But investors need a show of government support and signs that planning obstacles will be overcome if they are to risk the huge sums of money needed.

"The government's role essentially is to facilitate," said Alastair Scrimgeour of Deloitte.

"The point about Britain is it's known as a well-regulated, liberalised market.... It will be relevant, certainly to Europe," he added.

In its prolonged deliberations over its energy future, the Labour government initially described nuclear energy as "an unattractive option".

But since it made that statement in 2003, surging oil prices, which last week hit a record above $100 for U.S. crude, have made nuclear energy more competitive and the focus on the need to cut carbon emissions has sharpened.