Key Sentence:
- The Minister of Economy and Energy Quasi Quarteng has announced funding rules for a new large nuclear power plant.
- The move marks the final stage to build on the £20 billion Sizewell-C projects in Suffolk.
The planned facility is still subject to planning approval, but the Ministry of Finance is unsure how it will be paid. Even if the project is approved, it will still face severe local objections. The government says the new funding model could help lower the costs of new nuclear power projects in the UK. And save consumers more than £30 billion on each new large-scale facility.
Proposals include electricity customers prepaying a portion of the cost of the nuclear facility via bills. The new model, the RAB (Regulated Asset Base), has been used to fund several major infrastructure projects. Including the £4.2 billion Thames Tideway “Super Sewer.”
This allows investors to get a return before the project is completed. The government is in talks to fund a £20 billion nuclear power plant. The Ministry of Finance initially did not want to use the RAB model. EDF Energy firmly believes, however, that lessons from previous projects and the fact. That they are building a similar facility at Hinkley Point – have significantly reduced this risk, says Business Editor Simon Jack.
Mr. Quarteng said the new funding model was a better way to fund the projects.
“The current funding program has caused too many foreign nuclear developers to withdraw from projects. Which has cost the UK years of retreat,” he said. The employers’ organization CBI said the new funding model was “an important step in building a safe, affordable and greener energy system in the years to come.”
“Introducing a new project would be a huge boost to the supply chain and could create jobs in the UK,” said Tom Takrey, director of CBI’s decarbonization program.
The Nuclear Industry Association said it would add a small fee of a few pounds a month in the early stages of construction and less than 1 pound a month during the project. He “warmly” welcomed the plan, adding that at current carbon prices. It would also bring significant savings in carbon emissions of £526 million per year, or £18 per year for each UK household.
But the high cost of large nuclear power plants and the sharp drop in prices for renewables such as offshore wind power make the project controversial.