Letter from Greg Clark, Your editorial (” The UK needs a more realistic energy strategy”, January 18) rightly pointed out that the global energy market is changing fast. Cleaner sources of power, such as offshore wind, have fallen in cost to the point they will soon need no public subsidy. In this context, Britain’s electricity requirement for the 2030s is not a problem of shortages but the much better challenge of abundance. In fact, the last contract for difference auction in the UK procured 3 gigawatts of offshore wind – equal to the capacity of a nuclear power station – for only £57.50 per megawatt hour. We are committed to nuclear power as part of a diverse energy mix. Hinkley Point C is proceeding apace and other projects, including Sizewell C and Bradwell, are progressing through the regulatory process. Small modular reactors can have a role to play. But none of these can be at any price, hence the decision to set limits on consumers’ and taxpayers’ exposure to the costs of Wylfa, and the work being done to reduce financing and construction costs for new nuclear. The developing technology and economics of energy mean that we have a wider choice of power at a lower price than ever before, much of which can be deployed within years rather than decades. We are in a strong position where supplies are secure and costs are falling. Rather than resist this by applying rigidly an approach put together a decade ago, our policy is allowing taxpayers and consumers to take advantage of these developments: our energy white paper this summer will set out how this can benefit industrial and commercial customers.
FT 23rd Jan 2019 read more »