UK to put nuclear power at heart of net zero emissions strategy. British ministers will put nuclear energy at the heart of Britain’s strategy to reach net zero carbon emissions by 2050 in government documents due as early as next week, along with new details on its funding model. Kwasi Kwarteng, business secretary, is due to unveil the “Net Zero Strategy”, as well as a “Heating and construction strategy” and an assessment of the Treasury of the cost to reach the 2050 target. The main strategy will be heavily focused on the long overdue and slow British nuclear program. The country’s existing reactors are expected to be phased out by 2035, with construction of a single large plant, Hinkley Point C, already underway. The creation of a “regulated asset base” (RAB) model will be the key to the delivery of a future fleet of large nuclear power plants. The RAB funding model is already being used for other infrastructure projects, such as London’s Thames Tideway super sewer. Under this program, households will be billed for the cost of the plant via an energy tax long before it starts producing electricity, which could take a decade or more from the time. where the final investment decision is made.
FT 16th Oct 2021 read more »