Business and Industry Secretary John Hutton told members of parliament that the government does not plan to subsidize new plants, The Telegraph said. He said that most of the new generating stations would be built at the site of existing ones.

"Giving the go ahead today that new nuclear power should play a role in providing the U.K. with clean, secure and affordable energy is in our country's vital long term interest," Hutton said.

Immediately after Hutton's statement, the French company EDF announced plans to build four new plants in Britain by 2017. Three other companies, E.On of Germany, the British Gas parent Centrica and RWE npower, Britain's largest electricity generator, have all said that they are interested in constructing more companies.

Hutton said that plants supplying one-third of the country's power are scheduled to close down in the next two decades. That will leave Britain more dependent on imported oil unless more nuclear plants are built.