big money is always able to get policy-makers to ignore reality

UK to pay more for nuclear energy than renewable energy

14.05.2013: French energy giant EDF and the UK government are expected to come to an agreement this week over the strike price for a £14 billion nuclear power plant EDF hopes to build in Somerset, England. According to This is Money, the government will likely pay EDF £95 per MWh for 35 years, which is roughly twice the current market price for power in the UK. EDF, meanwhile, had been pushing for a rate of £100 per MWh for 40 years to ensure it receives a 10% return on investment. For comparison, the UK FIT program bases its tariffs for PV on a 4.5 to 5% rate of return. This month the Energy and Climate Change Committee published a report on new build nuclear energy projects in which it warned that the strike price offered to nuclear should not be higher than the price offered to other low carbon sources of energy, such as offshore wind, which is hoped to be around £100 per MWh by 2020. The UK aims to add 16 GW of new nuclear power stations by 2025 as part of its low-carbon energy plan. © PHOTON http://decc.gov.uk http://www.thisismoney.co.uk/money/markets/article-2298087/EDF-horse-r ace-build-14bn-nuclear-plant-Hinkley.html

 

 

Monty Bannerman

ArcStar Energy

646.402.5076

www.arcstarenergy.com