David Milborrow: In a complete policy reversal, the UK government has announced it will consider direct investment in a proposed new nuclear power station, Wylfa in North Wales. This will enable the electricity price to be brought down below the level agreed for the Hinkley Point C nuclear plant, which attracted criticism from many quarters, including the government’s own spending watchdog, the National Audit Office. The UK government’s stake in Wylfa is likely to be around £5 billion, or around 30% of the total, although estimatesof the total cost vary between £12 billion and £20 billion. The government has not put a figure to the expected electricity price for the Wylfa project, but speculation suggests that it will be around £75-77/MWh, payable for 35 years. The UK’s Guardian newspaper points out that the £75/MWh price (payable for 35 years) for nuclear power is significantly higher than the £62/MWh average (payable for 15 years awarded for offshore wind projects due to come online about the same time. The £13/MWh difference is higher than the cost of backup for wind, which most studies putat around £5-£10/MWh.
Wind Power Monthly 31st July 2018 read more »