London, Jan. 2 (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 UK 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 British 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 US 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.

The UK public is divided on the issue, with 44 per cent saying companies should have the option of investing in new nuclear and 37 per cent disagreeing.

In February a high court judge overturned the British government’s initial go-ahead, saying it failed to consult the public properly.

Greenpeace says a decision in favour of nuclear next week would still be unlawful, largely because people were given flawed information in the second consultation.

However, the judicial decision in February was on the basis of procedure rather than content, so a fresh legal challenge might have to follow a different tack. But many think the government would prefer a legal challenge from environmentalists to risking missing its CO2 targets due to the unreliability of renewable energy.