UK customers to pay in advance for Hinkley nuclear power, AND cop the financial risk?

EDF’s EDF seeks to charge customers upfront for UK nuclear plants, Ft.com , 23 Nov 18, Financing scheme modelled on London’s ‘super sewer’ aims to cut cost of power from reactors Jonathan Ford in London NOVEMBER 22, 2018 EDF is pushing a plan to finance nuclear investment in Britain that it claims would cut the cost of power from new reactors to levels competitive with gas and renewable energy. The French state-backed power utility wants to use a technique commonly used in utilities such as water, airports and power distribution. This allows companies to charge customers upfront for new infrastructure. It is being used in the £4.2bn project to build a “super sewer” under London’s river Thames. But the mechanism has never been tried for a project as technically complicated and lengthy as a nuclear power station, which can take a decade to build. This and other challenges mean any gains are not assured.

With capital-intensive, long-life assets such as sewers and power transmission networks, financing represents a substantial chunk of the overall cost that needs to be recovered ………

Why nuclear revival is struggling to take hold EDF’s proposal comes at a time when Britain’s much touted nuclear renaissance is in danger of shorting out. The first deal — which will see the French group and its Chinese partners build a £20bn station at Hinkley Point in Somerset — was struck in 2016 at a guaranteed strike price of £92.50 per megawatt hour (MWh) in 2012 prices, indexed for 35 years and worth about £105 in current terms. Heavily criticised for being excessive, it was at least similar in headline terms to the prices required for renewables, nuclear’s main zero carbon competitor. However, renewable costs have since fallen sharply, with some deals for offshore wind farms being signed for as little as £55-60 per MWh with 15 year contracts. ……….

Observers agree that RAB financing could potentially secure substantial reductions in nuclear power costs. “While it should always be cheaper for the state to finance nuclear construction directly, this would clearly lower the prices from the Hinkley approach,” said Dieter Helm, a professor of energy policy at Oxford university

But it has prompted concerns about the equity of the structure. “What RAB financing does is transfer project risks to customers, who are least well placed to bear them,” said Martin Blaiklock, an infrastructure expert who likens the technique to “being forced to pay for a meal at a restaurant before the restaurant has even been built, let alone served any food”.

Will consumers benefit? Consumers who paid up front for five to 10 years would run the risk that if the reactor were delayed, over-budget or ultimately not commissioned, the power savings would not materialise and they might suffer a total loss. Nuclear has a poor record for delivering on time and to cost. Two projects in Europe using the same technology, at Olkiluoto in Finland and Flamanville in France, are running 10 and six years late respectively. Both are about three times over budget. EDF has yet to prove that its EPR reactor design can even generate electricity at commercial scale.

There are also legal question marks over whether the technique would be deemed an illegitimate subsidy under state-aid rules. “A nuclear power station isn’t like a sewer, a monopoly infrastructure asset,” said Peter Atherton, analyst at consultants Cornwall Energy. “It competes with other private sector generators, which means legally it could be shades of grey.” Lower costs may be necessary to get nuclear back on track, but most observers think they are not sufficient. “Ultimately it comes down to whether you strategically think as a nation you should do nuclear,” says Prof Helm. “But if you do think you need it, then clearly it’s right to seek to do it at the lowest cost.” https://www.ft.com/content/f9a96304-e980-11e8-885c-e64da4c0f981

1.This Month

Reluctantly, I have realised that the climate crisis is the most huge and urgent problem for humanity, now. This website is not able to do justice to this enormous topic. All that I can do is to pick out significant information as it arrives, and also note some, (not nearly enough) of the climate events happening.

Meanwhile, nuclear-news will focus on its original purpose, to reveal the disastrous effects of the nuclear industry, and to refute the propaganda lies from the nuclear lobby.

Existential Abrupt Climate Change Risks to Humanity: Part 1 of 3

of the week

Hibakusha Appeal to End Nukes Now!

THE HUMAN EFFECTS OF THE NUCLEAR INDUSTRY – theme for June 2019.

Before we enter “a new nuclear age” – learn from the newly declassified Chernobyl health records

April 7, 2019

Fortunately, Chernobyl health records are now available to the public. They show that people living in the radioactive traces fell ill from cancers, respiratory illness, anaemia, auto-immune disorders, birth defects, and fertility problems two to three times more frequently in the years after the accident than before. In a highly contaminated Belarusian town of Veprin, just six of 70 children in 1990 were characterised as “healthy”. The rest had one chronic disease or another. On average, the Veprin children had in their bodies 8,498 bq/kg of radioactive caesium (20 bq/kg is considered safe).

For decades, researchers have puzzled over strange clusters of thyroid cancer, leukaemia and birth defects among people living in Cumbria, which, like southern Belarus, is an overlooked hotspot of radioactivity from cold war decades of nuclear bomb production and nuclear power accidents.

Currently, policymakers are advocating a massive expansion of nuclear power as a way to combat climate change. Before we enter a new nuclear age, the declassified Chernobyl health records raise questions that have been left unanswered about the impact of chronic low doses of radioactivity on human health.

Chernobyl’s disastrous cover-up is a warning for the next nuclear age

https://www.theguardian.com/commentisfree/2019/apr/04/chernobyl-nuclear-power-climate-change-health-radioactivity, Kate Brown , 5 Apr 19, Before expanding nuclear power to combat climate change, we need answers to the global health effects of radioactivity

Igor: Child Of Chernobyl (Medical Documentary) – Real Stories

Open Dialogue: Edward Snowden, Live from Russia | Dalhousie University–

Fukushima Will Leak Forever Day after Day after Day 5-28-2019

#DemocracyNow

U.N. Special Rapporteur Calls for Julian Assange to Be Freed, Citing “Psychological Torture”

Food, Glorious Food. Never Before Has Earth Needed More: Part 1 of 2

nuclear-news

The News That Matters about the Nuclear Industry Fukushima Chernobyl Mayak Three Mile Island Atomic Testing Radiation Isotope