Liberal Democrat Energy and Climate Change Secretary Edward Davey has been talking to ITN’s Laura Kuenssberg after £700 million private companies following the announcement that Hitachi were investing £700 million in new nuclear plants. He said:
It’s a real vote of confidence from a major international company…. This is good news for the public because it’s part of our energy security strategy to keep the lights on and to make sure energy is affordable.
We have made it very clear that there will be no public subsidy for new nuclear. There is no taxpayer subsidy in this at all.
Questioned on the fact that there will be a minimum price guarantee for suppliers, he added:
Because these are high capital projects, you have to put out a huge amount of money up to build an offshore wind farm, or a carbon capture and storage plant or a nuclear plant, by making sure that the risks are reduced, by having a clear price, that reduces the cost of capital which reduces the total cost so it reduces the price people pay for their electricity.
You can see the whole interview here.
* Caron Lindsay is Co-Editor of Liberal Democrat Voice and blogs at Caron's Musings