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Report questions value of new nuclear projects in Wales compared with renewables

nuclear-costsflag-UKNew nuclear projects in Wales must be ‘cost-competitive’ with renewables, say MPs , Business Green, 26 July 16  Planned nuclear sites in North Wales should only go ahead if government can prove development is ‘value for money’, as Business Secretary Greg Clark visits Japan to fan investor interest in UK nuclear projects

 Any new nuclear plant in Wales must be able to compete with renewable energy on cost, a Committee of MPs have told the government today.

Lawmakers on the Welsh Affairs Committee have published a new report insisting that before proposed nuclear developments at Wylfa Newydd and Trawsfynydd in North Wales go ahead the government must prove the financial viability and community benefit of the projects.

“The government must prove that the cost of any nuclear development is well understood and competitive with renewable sources. These costs must be made public in a format that can be easily understood,” Committee chair David Davies MP said.

“There has to be a demonstrable benefit for the local community as well,” he added. “Local businesses must form a key part of the supply-chain and be given sufficient information to allow this to happen.”………

The report concludes the government should only support the development at Wylfa Newydd if the strike price for the project’s electricity is competitive with renewables and below that of Hinkley Point C, EDF’s controversial nuclear project in Somerset which is due to receive a final investment decision this week. Hinkley’s strike price is £92.50 per MWh – more than double the current market price of power. In comparison, the strike price for onshore wind is around £80 per MWh with some experts now arguing new onshore wind farms can be built at a lower levelised cost than new gas power plants. ……..

Cost estimates for Wylfa Newydd must cover the lifetime of the project, including decommissioning and waste disposal, MPs said, after concerns were raised during their investigation that nuclear power projects are often subject to delays and cost schedule overruns. Cost estimates for Hinkley Point C have ballooned from £16bn in 2012 to almost £21bn earlier this year, while last week EDF’s Paris headquarters were raided by the French finance authorities investigating concerns about its reporting of maintenance and development costs………

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July 28, 2016 - Posted by | business and costs, politics, UK

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