by Staff Writers
London (AFP) June 23, 2017
A highly-controversial UK government deal for the new Hinkley Point nuclear power plant will cost British energy consumers billions more pounds than forecast, the country's National Audit Office said Friday.
"The Department for Business, Energy and Industrial Strategy's deal for Hinkley Point C has locked consumers into a risky and expensive project with uncertain strategic and economic benefits," the NAO said in a report.
Under the project, UK energy users will have sums added to their bills for a period of 35 years.
The NAO said the combined cost of such payments is set to surge to £30 billion ($38 billion, 34 billion euros).
"Delays have pushed back the nuclear power plant's construction, and the expected cost of top-up payments under the Hinkley Point C's contract... has increased from £6 billion to £30 billion," the report said.
"It will not be known for decades whether Hinkley Point C will be value for money. This will depend on whether the current contractual arrangements endure, along with external factors, in particular, future fossil fuel prices, the costs of alternative low-carbon generation, and developments in energy technology and the wider electricity system," it added.
Amyas Morse, head of the National Audit Office, said "time will tell whether the deal represents value for money, but we cannot say the Department has maximised the chances that it will be".
The contract for a French-Chinese consortium to build Britain's first nuclear plant in a generation was signed in September after a string of controversies threatened to scupper the huge deal.
The British government had delayed agreement over concerns about China's involvement, while there were also questions about how the French state-owned power giant EDF would fund the construction of Hinkley Point.
But Britain finally gave the go-ahead last September for the £18 billion complex, which is expected to provide seven percent of the country's power needs.
Beijing's state-run China General Nuclear Corporation is set to finance £6.0 billion of the cost of the Hinkley Point plant, with French state-owned power giant EDF providing the remaining £12 billion.
Critics have focused on an electricity price guarantee to be paid to EDF of £92.5 for every megawatt hour of power produced by Hinkley for the next 35 years, rising with inflation, despite falling energy prices.
The project is meanwhile strongly opposed by environmentalists, who urged the government to focus on renewable sources like wind and solar power to meet Britain's future energy needs -- especially since a massive earthquake and tsunami ravaged Japan's northeast coast and triggered a meltdown at the Fukushima nuclear power plant in 2011.
Moscow (AFP) June 19, 2017
Russian state nuclear energy conglomerate Rosatom on Monday agreed the sale of a 49-percent stake in the nuclear plant project Akkuyu in Turkey to Turkish investors, Russian agencies reported. The stake was sold for an undisclosed sum to a consortium of energy companies Cengiz, Kolin and Kalyon. The investment agreement will be signed by the end of the year, reports said. Rosatom would ... read more
Nuclear Power News - Nuclear Science, Nuclear Technology
Powering The World in the 21st Century at Energy-Daily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|