British Prime Minister Tony Blair put nuclear power back on the agenda today when he launched a review of energy policy, pledging to make a decision on how to fill a looming energy gap by the middle of next year.
A review concluded two years ago that costs associated with nuclear power were unclear and that renewable energy sources such as wind or solar power, combined with less wasteful use of existing fuel sources, could suffice.
Tony Blair leaves after speaking at the Confederation of British Industry conference in London today
But booming oil and gas prices, global warming caused by fossil fuels, an increased emphasis on energy security and the need to decide soon on whether to replace ageing nuclear plants is putting pressure on the government to take another look.
"(The review) will include specifically the issue of whether we facilitate the development of a new generation of nuclear power stations," Mr Blair told business leaders in London. He said energy policy was back on the agenda "with a vengeance" across the world and that the UK review would produce a firm policy announcement in early summer 2006.
Whatever the outcome, the nuclear lobby and environmentalists agreed it will give a signal to the rest of the world on expansion or closure of nuclear plants.
Speculation is rife that Mr Blair has already made up his mind to invest in nuclear power but a significant number of lawmakers in the Labour party are against the idea.
Anti-nuclear demonstrators staged a protest at the venue where Mr Blair was due to speak, mingling in suits and ties with delegates before clambering up into the rafters of the centre.
The prime minister was forced to deliver his speech in a cramped sideroom after Greenpeace protesters unfurled a banner and dropped leaflets, saying: "Nuclear: Wrong Answer".
Mr Blair told the annual conference of the Confederation of British Industry (CBI) employers' group that in 15 years, the mothballing of old coal and nuclear stations would leave a big hole in Britain's energy supply.
"Some of this will be replaced by renewables but not all of it can," he said. Business leaders favour nuclear power but environmental groups want more efficient use of fossil fuels, less electricity waste and more investment in renewable energy sources.
Earlier, Industry minister Alan Johnson told BBC Radio the energy review would concentrate on the security of supply, affordability and cutting greenhouse gases.
Britain has become a net importer of gas as its North Sea supplies dwindle and the government is concerned about the security of supply, which will increasingly come from abroad. Rocketing gas prices have highlighted possible problems. All but one of the UK's nuclear power stations are due to close by 2023.
Without new investment, nuclear power will meet only a small fraction of Britain's energy needs by 2010, down from 21 per cent now.
But Mr Blair faces opposition from Labour lawmakers, some 40 of whom have signed a motion rejecting new nuclear power stations.