5 ms·

The strike price for nuclear power from Hinkley Point C when it becomes operational will be £92.50/MWh. This has received a lot of criticism for being too high

The strike price for nuclear power from Hinkley Point C when it becomes operational will be £92.50/MWh. This has received a lot of criticism for being too high. With current wholesale rates at £385/MWh, suddenly Hinkley Point C doesn't look so expensive any more.

pfdietz 5y ago
Except Hinkley Point C would require those high prices persist for a decade in order to pay off. That's unlikely to happen.
- cbmuser 5y ago
  Well, I don’t see why it shouldn’t happen. It’s not like the UK is currently building nuclear power plants like China or Russia do.
  - pfdietz 5y ago
    High prices like that will bring in a flood of new renewable capacity. It cannot last.
- Brakenshire 5y ago
  For 3 and a half decades.
SuoDuanDao 5y ago
Cost of capital is a thing though. Much easier to raise money for a wind turbine or solar panel than a nuclear reactor. They're very efficient once running, but at that point they have investors and insurers to pay back.
hanoz 5y ago
> £92.50/MWh Index linked.
pydry 5y ago
Grid scale battery banks also make sense at that price.
jabl 5y ago
Well, the price for HPC is very expensive. The stupid thing is that by structuring the subsidy in a smarter way the UK could have gotten it at half the price. I've seen no reason why they did it how they did except adherence to some ideological dogma. Or putting my conspiracy glasses on, maybe some politically well-connected bankers in London made off like robbers at the expense of the public at large.
- Ekaros 5y ago
  TVO in Finland managed to get similar plant for final price of 5,7 milliard euros. Though it is not yet producing energy. So, UK did somewhat worse in the process.
  - Gwypaas 5y ago
    Yep, by forcing Areva, the supplier of it, into bankruptcy by having the foresight of signing a fixed price deal. https://en.wikipedia.org/wiki/Areva#Restructuring https://en.wikipedia.org/wiki/Areva#Restructuring

pfdietz 5y ago

Except Hinkley Point C would require those high prices persist for a decade in order to pay off. That's unlikely to happen.

cbmuser 5y ago
Well, I don’t see why it shouldn’t happen. It’s not like the UK is currently building nuclear power plants like China or Russia do.
- pfdietz 5y ago
  High prices like that will bring in a flood of new renewable capacity. It cannot last.
Brakenshire 5y ago
For 3 and a half decades.

SuoDuanDao 5y ago

Cost of capital is a thing though. Much easier to raise money for a wind turbine or solar panel than a nuclear reactor. They're very efficient once running, but at that point they have investors and insurers to pay back.

hanoz 5y ago

> £92.50/MWh Index linked.

pydry 5y ago

Grid scale battery banks also make sense at that price.

jabl 5y ago

Well, the price for HPC is very expensive. The stupid thing is that by structuring the subsidy in a smarter way the UK could have gotten it at half the price. I've seen no reason why they did it how they did except adherence to some ideological dogma. Or putting my conspiracy glasses on, maybe some politically well-connected bankers in London made off like robbers at the expense of the public at large.

Ekaros 5y ago
TVO in Finland managed to get similar plant for final price of 5,7 milliard euros. Though it is not yet producing energy. So, UK did somewhat worse in the process.
- Gwypaas 5y ago
  Yep, by forcing Areva, the supplier of it, into bankruptcy by having the foresight of signing a fixed price deal. https://en.wikipedia.org/wiki/Areva#Restructuring https://en.wikipedia.org/wiki/Areva#Restructuring