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More learned opinion is now urging government caution towards the new nuclear reactor at Hinkley Point

More learned opinion is now urging government caution towards the new nuclear reactor at Hinkley Point

It looks like common sense is starting to prevail. More learned opinion is now urging government caution towards the new nuclear reactor at Hinkley Point. This op-ed piece in the FT.

It correctly notes that nuclear reactors, once built, ‘will churn out electricity at a steady price, unmoved by volatility in wholesale gas prices.’ Of course, solar already does that. But what it goes on to point out is the price guarantee that the government has offered EDF for the electricity the reactor will produce. At £92.50/MWh, the price is double the current wholesale rate and a lot more than solar for which all subsidy is set to end in 2019.

There are sound reasons for the government to look again at this project and work the numbers hard because the case for cancelling it is getting stronger. As the FT observes, pulling the plug now risks upsetting the French and embarrassing the government. We reckon that alone is enough reason to stop this folly now,  but the money consumers will save will come in handy too.