UK government pledges Government pledges £1.7bn of public money to new nuclear plant

Government pledges £1.7bn of public money to new nuclear plant

The Guardian understands the funding is likely to be used to back the planned £20bn Sizewell C, Guardian,   Jillian Ambrose Energy correspondentThu 28 Oct 2021 The government will make its first direct investment in a large-scale nuclear reactor since 1995 after pledging to plough up to £1.7bn of taxpayers’ money into a new power plant.

Treasury documents published alongside the autumn statement did not name which nuclear project would be in line for the public funds, but the Guardian understands it is most likely to be the planned £20bn Sizewell C plant in Suffolk.

Government officials are locked in talks with Sizewell C’s developer, the French state-backed energy company EDF, about how to finance its successor to the Hinkley Point C plant in Somerset………..

The government set out new legislation earlier this week for a financial support framework for nuclear plants which would make the projects more attractive to investors by piling part of the upfront cost on to household energy bills before the plants start generating electricity.

By making a direct investment in a nuclear plant through the new financial framework, known as a Regulated Asset Base (RAB) model, the government could effectively put both taxpayers and energy bill payers on the hook for costly construction delays……….

A spokesperson for the Treasury was not immediately available to comment.

The government’s nuclear ambitions are also backed by £385m for research and development of ‘advanced nuclear’ technologies, and it has set aside £120m to address the nuclear industry’s barriers to entry…..   https://www.theguardian.com/environment/2021/oct/27/government-pledges-17bn-of-public-money-to-new-nuclear-plant

October 29, 2021 - Posted by Christina Macpherson | business and costs, politics, UK