New study shows positive impact of nuclear power stations on UK jobs
A new report published outlines the significant contribution that nuclear energy has made to economic growth in the UK over the last five decades.
The report, by independent consultants, Economic Insight, looks at the economic impact of the current fleet of eight nuclear power stations during their operational lives and shows they have so far contributed more than £123 billion* to the UK economy since the two oldest stations started operating in 1976.
The current operating fleet is made up of seven Advanced Gas-cooled Reactor (AGR) stations, which came online between 1976 and 1988 and one Pressurised Water Reactor (PWR) – Sizewell B - which started generating in 1995. Five stations are still generating zero-carbon electricity, while three of the AGRs stations are now in defueling, the first stage of decommissioning.
The £123 billion total, or the Gross Value Added (GVA), is made up of ‘direct’ impacts like the value of the power produced and EDF staff costs; ‘indirect’ impacts created through investment in the supply chain and ‘induced’ impacts created by staff and contractor wages spent in a local area. The data is broken down by station. For example, the two power stations at Heysham in Lancashire have delivered nearly £30billion to the economy since the early 1980s. Torness in Scotland has delivered over £16billion of economic value.
Dr Mark Hartley, Managing Director of EDF’s Nuclear Operations business, said: “Nuclear power stations do not just produce zero-carbon electricity, they have supported tens of thousands of livelihoods for decades.
“This is the first time the economic impact of the operating phase of the fleet has been analysed in this way. Seeing how the combined value of the power, jobs and supply chain spend adds up over time really helps to throw into sharp relief the positive impact that these facilities have on economic growth. The investment made in these stations over nearly 50 years has paid dividends, and will continue to do so, not just for the people working and living close to the stations but also the millions who benefit from the zero-carbon electricity they produce.”
The report found that the fleet supported 31,000 jobs each year when all eight stations were generating. Five thousand of those jobs have been directly with EDF, with the majority coming through supply chain and other induced impacts, like hospitality businesses supported by local wages. That means an average of 5.3 additional jobs in the UK economy for every EDF job.
Greig Elliot is Fuel Route Manager at Torness power station and the third generation of his family to work at the site, he said: “The nuclear industry has supported my family for more than forty years. My grandfather worked at the site during construction, my father also started on construction the week I was born, I have been working here for more than 27 years. I have seen first-hand the benefits that nuclear can bring to areas like East Lothian and the Scottish Borders and I am proud to be part of that.”
The positive impact on the UK supply chain is also highlighted with a finding that more than 90% of supply chain spending is made domestically, with around 1500 UK-based companies.
The report also employs a new methodology for calculating the carbon the stations have avoided from entering the atmosphere. Instead of comparing the output to gas generation alone, the report looks at the historical energy mix, when coal was the prevailing fuel. This reveals that the 2,126TWh of electricity the fleet has generated has avoided 1.1 billion tonnes of carbon, that is the equivalent to 16 years of UK car emissions.
Madeleine Matos, Economic Insight, said: “Our work demonstrates the high value the nuclear power stations add, both in terms of their operations and the wider impact on the UK economy through supply chains and employment, as well as their large environmental contributions. Additionally, as the designs of the nuclear power stations evolved, we can also see how much more efficient and productive they have become, thus contributing further and more to clean energy ambitions, beyond their broader economic contributions to the UK economy and jobs market.”
EDF has also published its annual fleet stakeholder update, which outlines the performance of the fleet over the past year and outlines future plans.
The update shows that output from the nuclear fleet stayed steady in 2024 at 37.3TWh with an ambition to maintain that level until at least 2027. Taxes of over £1billion were paid, including over £400million through the new Electricity Generator Levy. In 2024, EDF also confirmed life extensions for the four generating AGR stations and made significant progress in delivering on its defueling contract with the UK Government.
