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Under a deal first agreed in 2013 Hinkley will be paid a fixed price of £92.50/MWh for the power it produces for 35 years, funded through levies on energy bills. The National Audit Office has said it could cost up to £30bn in subsidies.

Among hundreds of pages of documents issued on Thursday afternoon – some heavily redacted – ministers faced a series of questions over a cursory three-page assessment concluding that the deal would add £12 to energy bills in 2030 but was “value for money”.

The assessment said Hinkley was “cost-competitive to other options for delivering power” despite its own assessment that the “comparable cost” of new gas in the 2020s could be as low as £45/MWh, solar as low as £65/MWh and onshore wind as low as £49/MWh.

If Hinkley was delayed by three years and gas plants built instead then by 2030 the UK would be £3.2bn better off and energy bills would be “£6 cheaper per year”, it concluded……..

As Prime Minister Theresa May and EDF prepare to sign the Hinkley Point C contract, and Scotland sees the first shipment of fracking gas from the United States, it is perhaps timely to reflect on recent developments in UK energy policy.

Both new nuclear build and UK onshore shale gas and oil extraction fail key environmental, safety and economic tests.

The UK has recently committed to a nuclear renaissance, with Greg Clark, the Secretary of State for Business, Energy and Industrial Strategy (BEIS) at Westminster, describingthe “dawning of a new age of nuclear”.

But by commissioning French and Chinese companies to build the first UK nuclear power station in a generation, the Hinkley Point C deal has come in for almost universal condemnation.

Theresa May clearly buckled under economic pressure from China and has backed nuclear power as the panacea to combat the electricity crunch that we face. Her questionable decision means the UK is committed to a long-term very expensive project that comes with national security and many other concerns.

Empty promises

In 2007 the Chief Executive of EDF’s UK arm effectively cooked his own goose by claiming that Brits would be cooking their Christmas turkeys using nuclear power generated from Hinkley Point C by 2017. Now EDF are claiming that they won’t go over budget, when the new power plant is delivered some time in 2025.

If ongoing experience in France and Finland is anything to go by, and with apparently few financial penalties in place for late delivery, there are serious doubts that the project can be completed in the revised timescale and on budget.

Turning to the financials, the costs of the project are just enormous. Some have claimed that Hinkley Point C will end up being the most expensive physical object ever built. The project is a £100 billion boondoggle. The construction costs alone are in the region of £18-£25 billion. Then there are the subsidies that will amount to a conservative £1 billion plus per year, for at least 35 years.

The deal penned is inflation linked at more than twice the cost of current wholesale electricity prices. The plant will then operate for a further 30 years. It has a potential life span of around 65 years and it will continue to be a drain on public finances even after the initial lucrative contract has expired.

Then try to add into the calculus the unstated decommissioning and radioactive waste management costs, and it soon becomes apparent these super-burdensome costs and risks are incalculable.

If Sellafield in Cumbria, England, is used as a baseline, such costs are just eye watering. Indeed, bucket loads of money amounting to tens of billions of pounds have already been spent, trying to make safe the UK’s nuclear legacy. Based on the available evidence one can only conclude that cheap and clean nuclear power is a myth.

Fuel poverty for future generations

In terms of what Hinkley Point C will mean for household budgets, it is estimated that it will push up individual electricity bills by around £50 per annum. But this is just the start of such price rises as Hinkley Point C is the first of a number of new nuclear projects.

It is only around 3 GW of a 16 GW plus plan. Electricity bills will spiral out of control, as they did a few years ago when there were regular inflation busting price increases. The new nuclear age described by Greg Clark will surely set us on a path to fuel poverty for decades.

Even if households and business can afford such future hideous electricity bills, it might be 2030 before we see the plant operational – more than a decade later than was initially planned. Its promise to generate up to 7% of the UK’s electricity demand will be delivered around a decade too late to meet the 2020 electricity crunch that the UK faces…….

Glittering prizes or fracking folly?……..

Can we have more renewables please?

Most people don’t realise that renewables now supply around 25% of UK electricity and in Scotland it is over 50 per cent. Their market share has grown rapidly in recent years, trebling between 2010 and 2015.

Renewables now supply more electricity to the national grid than nuclear power and coal. They are very popular with the general public, cost-effective, and can be deployed very quickly, compared to the nuclear and shale options just outlined. They are also cleaner energy sources, and given all of these positives should surely be deployed to address the looming electricity crunch that threatens the UK.

But for the past two years the renewables industry has been under attack by the Conservative government. Changes to financial support mechanisms and the planning regime are now bringing onshore wind to a standstill. Solar support is being killed off. And while there is much rhetoric around offshore wind, it is actually progressing at a snail’s pace.

The direct effect of Conservative government policy changes has led to many thousands of green jobs being lost.

Another emerging and detrimental effect has been to undermine local community initiatives. In addition to supplying much needed electricity and investment in local assets such as community halls, churches and youth projects, community owned renewable projects encourage energy conservation, and have wider and important public education benefits.

If ever we needed some sign of reprieve for UK renewables, it is now.

A call to action

Westminster must get back on course and harness the heat of the sun, and the (gale) force of our wind, and the power of our waves and tides. It should fully embrace the energy transition from fossil fuels and nuclear power, to a renewable energy future.

Germany, Europe’s strongest economy, gets it and is making huge strides with their ‘Energiewende‘ strategy. The Scottish Parliament at Holyrood also gets it, and to pinch a phrase from former First Minster Alex Salmond, we have the potential to become the“Saudi Arabia of Renewables“.

The future of humanity depends on an all-encompassing global acceptance of the replacement of fossil fuels and nuclear power by renewables. If there is still a perception that British moral values lead where the world follows then its status is at best precarious.

Theresa May and Greg Clark must step up to the plate and nail the renewables flag to the top of UK energy policy. Nuclear power and fossil fuels have no economic or moral right to a long-term place in UK energy policy.

Peter Strachan is Professor of Energy Policy, Robert Gordon University. He tweets@ProfStrachan.

Professor Alex Russell is Chair of the Oil Industry Finance Association.

Authors’ note: The opinions expressed in this article are those of the authors and not those of the Robert Gordon University or Affiliates.

This article was orginally published on EnergyPost.eu.  http://www.theecologist.org/News/news_analysis/2988167/nuclear_and_fracking_the_economic_and_moral_bankruptcy_of_uk_energy_policy.html