In September 2017, the FT reported that Hinkley Point C was initially guaranteed £92.50 MWh but that this was inflation-linked and is already closer to £100/MWh. The guarantee also stands for 35 years so who knows what the ongoing costs to the UK consumer will be and, of course, de-commissioning costs won’t even be considered. However, In the latest auction with the UK government, offshore wind energy developers offered prices as low as £57.50 per megawatt hour (MWh).
So, a nuclear is a very bad deal indeed for the UK consumer but not for us given that we must surely break away long before 35 years have passed. Now a new study published today in partnership between battery developer Eaton, the Renewable Energy Association (REA) and Bloomberg New Energy Finance (BNEF) suggests further reductions to around half of current costs and consequently around a quarter of the cost of nuclear-generated electricity. Depending on inflation, the gap could be even wider. I thus make the cancellation of Hinckley Point C a no-brainer but no doubt it will go ahead for political reasons.
An earlier study by BNEF predicted that 75% of around $10 trillion global investment in energy technologies by 2040 will go to renewable forms. Given Scotland’s early lead in wind and tidal energy generation and our growing expertise in the field, we can look forward with confidence. See: