UK taxpayers bankroll £15bn new nuclear power plant

Proposed new nuclear plant, Anglesey [image credit: walesonline]

They jokingly claim this will help to ‘supplement’ renewables which sometimes provide close to zero input to the electricity grid system. The reverse is much closer to the truth – renewables supplementing nearly everything else, but only when the weather and/or time of day allow it.
H/T AC Osborn

Ministers will this week reverse decades of opposition to investing taxpayer money in nuclear energy by agreeing to bankroll a £15bn-plus power station in Wales, says The Times @ the GWPF.

The government will commit to taking a direct stake in the Wylfa plant on Anglesey, planned by the Japanese industrial giant Hitachi, after more than two years of negotiations.

It is understood the government will also provide the vast bulk of the £9bn debt. State equity will slash the cost of borrowing, but leave the taxpayer exposed if costs balloon or the project overruns.

It has, though, helped ministers to negotiate a strike price — a guaranteed payment for the plant’s electricity — of about £77.50 per megawatt hour. The government was determined to achieve a cheaper price than the £92.50 agreed with EDF, which is building the £20bn Hinkley Point power station in Somerset.

It is understood that this week’s heads of terms agreement with Hitachi will refer to “lessons learnt” from Hinkley. That deal was criticised by the National Audit Office for driving up the cost by piling too much risk on EDF.

The Sunday Times revealed the prospect of British and Japanese taxpayers taking stakes in the Wylfa project in March 2016.

Continued here.

via Tallbloke’s Talkshop

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June 4, 2018 at 10:55AM

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