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EDF Energy will get £93/MWh for nuclear power generated at its proposed Hinkley Point C plant, according to The Times, as the deal draws closer.
Without citing any sources, the article asserted the UK government had agreed to the guaranteed “strike” price for 40 years. Renewable generators, by contrast, are to get 15-year contracts.
It also said China General Nuclear Power Group, formerly known as Guangdong, will take a stake of up to 49 per cent in the £14 billion project.
On Saturday, the Telegraph reported government and EDF are still haggling over how much risk and reward to share with customers. That article said the strike price was believed to be £90-93/MWh over 35 years.
The less risk EDF Energy is asked to shoulder, the lower the headline strike price it is likely to accept.
An announcement on the deal is expected by the end of the year and possibly as soon as this month.
Any agreement will be subject to scrutiny by the European Commission under State Aid rules. On Wednesday, it emerged the Commission had rejected attempts to refer to nuclear in new guidelines being drawn up, increasing uncertainty over how the UK government’s proposal will be treated.
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