UK seen giving green light to new nuclear plants

By Pete Harrison

LONDON (Reuters) - Britain is expected to give the go-ahead to a new generation of nuclear power stations next week, sparking a frenzy of deal-making by nuclear firms as well as a fresh challenge from environmental campaigners.

"I don't think the government has any other option," said analyst David Cunningham at Arbuthnot Securities. "It's a necessary evil."

Nuclear operators say they could have new plants running by 2017, helping Britain to meet its 2020 goals for combating climate change.

The government green light, expected on Tuesday, is likely to be accompanied by publication of an Energy Bill to be fast-tracked through parliament alongside the Climate Change Bill and the Planning Bill.

The trio of bills form the backbone of the government's new energy and climate policy for the next decades.

The decision is also being closely watched by other governments, many of which increasingly view nuclear power as an essential part of the energy mix to keep the lights on and combat global warming from burning fossil fuels.

But they face varying degrees of public opposition.

While the United States is well on the way towards a new generation of nuclear plants, other countries like Germany are phasing out nuclear power because of safety concerns.