Hinkley Cost Is ‘Within Range’ Of Other Technologies, Says Gov’t Assessment

30 Sep (NucNet) Hinkley Point C is within the range of the costs of alternative large-scale low-carbon generation technologies in the 2020s and the so-called ‘strike price’ of £92.50 per MWh is towards the bottom of other technologies, an assessment commissioned by the UK government says. The ‘value for money’ assessment, which has been published online, says the comparable cost range of first-of-a-kind commercial carbon capture and storage is £77-249 per MWh for delivery in 2025; offshore wind is £81-132 per MWh and combined cycle gas turbines £47-96 per MWh. Hinkley Point C is above the comparable cost range of large-scale solar photovoltaics (£65-92 per MWh) and onshore wind (£49-90 per MWh). However, in order for large-scale solar and onshore wind to produce the same amount of electricity provided by the two planned Areva EPR units at Hinkley Point C, “significant upgrades” to the grid would be needed, such as connection and planning costs, as well as increased costs to keep the system in balance, the assessment says. It is also important to note that the cost range for Hinkley Point C does not fully capture the cost of a like-for-like replacement of Hinkley Point C as a provider of “firm or reliable” capacity from the 2020s to the 2080s. Hinkley Point C offers the value of “diversity in the generation base” and unlocks the “option value for further new nuclear”, the assessment says. The assessment concludes that the ‘contracts for difference’ package for Hinkley Point C offers a fair return to investors without overcompensating them given the true costs and risks faced by the project. The assessment is online: http://bit.ly/2diAQK9