Comment on new nuclear funding model

Commenting on the new finance model for future nuclear power stations announced today, Dr Simon Cran-McGreehin, Head of Analysis at the Energy and Climate Intelligence Unit (ECIU) said: “Whilst experts agree the UK will require some low-carbon generation that can run all the time, nuclear power is historically costly and there are risks in construction whichever way you fund it. Using this Regulated Asset Base model means consumers may be drawn into paying for the plant even during the ten or so years of construction and well before the plant has generated any power, while bearing the risks of delays and cost over-runs.

“The high cost of nuclear technology combined with long build times means it isn't a quick fix to our current energy challenges. The Government's continued and increasing focus on renewables alongside storage and flexibility - which can be quickly and cheaply deployed - are projected to form the backbone of a cost-effective, reliable energy system in the UK. Huge offshore windfarms are being built in just three years, and renewables are the cheapest form of electricity generation – where consumers only start paying once they start receiving power.”