UK Hinkley nuclear plant estimate skyrockets $30 billion in past year.

[kristopher]

1. Estimate of government support for Hinkley nuclear plant rises five times

Subsidy for Hinkley nuclear power station quintuples to £30bn
Estimate of government support rises five times

JULY 13, 2016 by: Andrew Ward, Energy Editor

Consumers will pay a £30bn subsidy for electricity from the proposed Hinkley Point nuclear power station — almost five times the original estimate — according to the latest projections from the National Audit Office.

The increase reflects a reduction in long-term forecasts for the wholesale cost of electricity — widening the gap between market prices and the amount promised by the UK government to EDF, the French company planning to build the plant.

Under a deal agreed in 2013, EDF will be guaranteed a price of £92.50 per megawatt hour of electricity — rising in line with inflation — as an incentive to shoulder the £18bn construction cost.

This represents a premium over the current wholesale price of about £45 per MWh and forecasts for the future size of these “top-up payments” has increased as falling fossil fuel prices has lowered long-term expectations for the cost of electricity...

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