The U.K. government is ready to provide support to Hitachi Ltd.’s 20 billion-pound ($27 billion) nuclear project in exchange for a lower guaranteed power price once the two reactors are up and running. There are several funding options still being discussed, including a direct equity stake in the project, a sovereign guarantee on loans and a partnership between the U.K. and Japanese governments, said Richard Harrington, the under-secretary of state for business and industry. “From the government’s point of view, it’s about taking some risk for a lower price for the consumer,” Harrington said in an interview in London. “That’s what the government is looking at and what the Hitachi board were discussing — whether the British government’s position was suitable for them to take it to the next stage.” Following a board meeting on May 28, Hitachi said it wasn’t yet ready to move ahead with the nuclear project and would continue talks with the U.K. government over the financial framework, Japanese newspaper Kyodo reported, citing an unidentified person. Hitachi is also seeking a guarantee on the power price it will receive from the planned reactors at its Wylfa Newydd site in north Wales. The U.K. has decided it must be less than the 92.50 pounds a megawatt-hour it agreed to pay EDF for Hinkley, Harrington said
Bloomberg 31st May 2018 read more »
Following weeks of speculation it has emerged that the UK government is about to agree an investment deal with Hitachi, owner of the 2.9 GW Wylfa Newydd nuclear power project in Anglesey, North Wales. An announcement is due, in the week of 4 June that it will help to fund the construction of the plant, which could cost more than £15 billion, and could rise to £20 billion. The deal should reduce energy bills to consumers when Wylfa is up and running, but it could expose the government to a greater risk from cost overruns as it will own a direct stake.
Modern Power Systems 1st June 2018 read more »
