| HN Mirror

Holy crap: "In October 2013 the Government agreed a deal with the French state-owned energy giant to guarantee it a price of £92.50, index-linked to inflation, for every megawatt-hour of electricity the £18bn nuclear plant would produce over a 35 year period."

That's madness. The same madness, IMHO, inherent to most 'targeted' energy generation subsidies. Although, it's a little hilarious that they've managed to get themselves into a situation where their own subsidies will be competing with one another (i.e. subsidising some other non-nuclear generator will reduce wholesale electricity prices, forcing them to pay out more because of their guaranteed 'strike-price' for Hinkley).

However, just reading that Guardian article, there's some pretty questionable thinking going on at the NOA if their quoted statements are representative:

Supporting early new nuclear projects could lead to higher costs in the short term than continuing to support wind and solar. The cost competitiveness of nuclear power is weakening as wind and solar become more established,” according to the report, titled Nuclear Power in the UK.

I don't understand this fixation on short-term costs (and yes I do understand that money has a time-value). Given climate change is a long-term problem, and we're probably going to be generating electricity well into the future, why are short-term costs in any way relevant? Also, despite being depressingly common, weasel phrases like 'the cost competitiveness of nuclear power is weakening' really have no place in a government report on a matter of this importance. Is the financial case presently stronger or weaker for nuclear? And which option maximises net social welfare? Those are the only relevant questions in my mind.

“The decision to proceed with support for nuclear power therefore relies more on strategic than financial grounds: nuclear power is needed in the supply mix to complement the intermittent nature of wind and solar,” it added.

Meaning it is a financial issue? No matter how you choose to solve the intermittancy problem, they all cost money. Very sizeable amounts of money. Pumped-hydro plants and HVDC lines don't exactly grow on trees.