UK taxpayers bankroll £15bn new nuclear power plant

Posted: June 4, 2018 by oldbrew in Emissions, Energy, government, News, Nuclear power
Tags: , ,

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.

  1. Adam Gallon says:

    Was the meagre 0.53GW from renewables at 11pm, on 3rd June a new low for the UK?

  2. oldbrew says:

    Adam – certainly needs some ‘supplementing’ 😎
    – – –
    BBC Wales: Wylfa Newydd nuclear plant funding details ‘imminent’
    2 hours ago

    Clark just made statement in House of Commons (ended ~6.35pm) but not much detail it seems.

  3. ivan says:

    It shouldn’t cost anything like that amount if the engineers took a good hard look at the regulations regarding the building of nuclear power plants.

    a billion or two could be knocked off just by reducing the needs of the environmental impact studies. several more billions could go if they started removing the 70s paranoia which put regulations on regulations which costs the earth to fit round.

    Since there is adequate demonstration that most of those regulations are not required – think nuclear power plants for ships and submarines, getting rid of them would free up the production of nuclear power plants so producing consistent power at low cost.

  4. tom0mason says:

    I thought Wales was going to get all it’s electric power from tidal and wind power?
    They can’t do it?
    Obviously the Welsh aren’t trying hard enough, not contributing enough subsidy, and should be tax more for the necessity of allowing renewable (grid ruinable) electricity just for the Welsh masses.
    /sarcoff 🙂

  5. Richard111 says:

    Is the UK printing money?

    Just read that an off shore wind farm is getting 2.5 billion!

  6. oldbrew says:

    Richard – Guido also notes:

    an equivalent investment in gas-fired power plants could generate three times as much energy, subsidy-free. And they work all the time, on demand…

    Sanity, not to mention fiscal responsibility, has gone out of the window in government policy on electricity generation.

  7. A C Osborn says:

    Richard111 says: June 5, 2018 at 7:40 am
    Is the UK printing money?

    No the Government is stealing from the Tax Payers to give to their cronys.
    Nothing changes.

  8. Stephen Richards says:

    Could be six for the price of HS2

  9. oldbrew says:

    Ongoing smart meter fiasco…
    – – –
    Date: 05/06/18 Bloomberg

    Britain’s gone seven days with almost no wind generation and forecasts show the calm conditions persisting until the middle of the month.

    What was that about nuclear ‘supplementing’ renewables?

  10. Gamecock says:

    Agreed, Ivan. It costs billions because government makes it cost billions.

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