The Hinkley delay has certainly ruffled diplomatic feathers, given China’s significant stake in the project. And it will create yet more uncertainty in an energy industry in which certainty is critical to fostering long-term investment. But it was the right decision, in light of serious concerns about whether the project represents value for money and the security risks of depending on Chinese investment for a project so critical to long-term national security. Yet the decisions that lie ahead will be even more difficult. Will the government kick the Hinkley decision into the long grass, as it has done with other difficult infrastructure decisions, such as additional airport capacity? Or will it use the coming months to reconsider how nuclear power fits into a long-term energy strategy? It is clear that Hinkley, as currently conceived, represents a terrible deal for taxpayers. Because nuclear power has such significant upfront costs, it will always require some form of state subsidy. By far the most efficient way is for the government to issue nuclear bonds, taking advantage of cheap borrowing costs.