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Nuclear Subsidy Deal ‘Will Kill Renewables’ via Climate news network

The battle over the UK’s plan to subsidise nuclear power will decide Europe’s energy mix for the next 50 years, say critics.

LONDON, 7 April – The United Kingdom’s plans to build heavily subsidised nuclear power stations have come under withering attack from a coalition of Members of Parliament, academics, energy industry experts and environmental groups.

Evidence has poured into the European Commission, which is investigating whether the deal with the giant French nuclear company EDF breaks EU competition rules. The evidence from many objectors, whose submissions had to be made by today, claims that if the contract goes through it will wreck Europe’s chance of building up renewable energies to avert the worst impacts of climate change.

They say renewables will have to compete in an unfair market where one generator, nuclear, is guaranteed to be able to sell all its electricity at a stable price and with a built-in profit until 2058.

The UK Government has agreed a minimum price of £92.50 (US $153) a megawatt hour from a new nuclear power station at Hinkley Point in the west of England from 2023 – roughly double the existing price of electricity in Britain. The price will rise with inflation and runs for 35 years, a deal unprecedented in the energy sector, and not available to renewable energies like wind and solar. The guarantee will continue for all future nuclear stations too.

The Government has gone further, guaranteeing loans for construction, and providing insurance and compensation payments if policies change for any reason. It claims that the deal will save £75 a year on the average consumer’s bill if electricity prices rise by 2023, as it forecasts. If they do not, then consumers will be paying far more for their electricity than they would otherwise.

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Bad value

Friends of the Earth says that currently there are seven to ten viable renewable energies being developed in the UK, among them wind on and off shore, solar, biogas, wave, under-sea turbines, small-scale hydro, biomass, and hot rocks, all of which could contribute to the energy mix if nuclear had no guaranteed unfair advantage.

These were all comparatively new technologies, where the price of generation was coming down all the time. In contrast, FoE says, nuclear has been operating for 60 years and still requires a 35-year price guarantee.

By the time Hinkley is in operation, solar and on-shore wind will be far cheaper, with costs falling fast, and it is likely that offshore wind will be in a similar position. The nuclear subsidy “represents extremely bad value for money for UK citizens,” the submission concludes. – Climate News Network

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