The Government is extremely close to making a deal with EDF on the building of a new nuclear reactor at Hinkley Point in Somerset. Speaking on the BBC’s Andrew Marr Show, the Rt Hon. Ed Davey MP, Secretary of State for Energy & Climate Change said that a deal is “extremely close”. He also said: “I am convinced I will be able to look consumers in the eyes, look businesses in the eyes, and say we have a good deal".
The Government has been in negotiations with EDF over the fixed price or ‘strike price’ that power from the reactor will receive under the new Contracts for Difference regime being introduced in the current Energy Bill. A price of £93 per megawatt hour is rumoured to be being discussed, which would result in the firm receiving approximately £0.5 billion per year in revenue support. To accompany the launch of our new inquiry into nuclear power, Carbon Connect has produced a calculator to illustrate the costs of a new nuclear programme in the UK. The Government estimates that up to 16 gigawatts of new nuclear capacity could be constructed, in order to replace retiring power stations to help reduce power sector carbon emissions by up to 75 per cent by 2030. The new reactor will be the first to be constructed in the UK since Sizewell B was completed in 1995.
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