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Britain pledges up to 1.7 billion pounds towards a new nuclear plant

Britain pledges up to 1.7 billion pounds towards a new nuclear plant
Britain pledges up to 1.7 billion pounds towards a new nuclear plant   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p>By Susanna Twidale</p> <p><span class="caps">LONDON</span> – Britain has pledged up to 1.7 billion pounds ($2.34 billion) to help a new large-scale nuclear project get off the ground in the next few years, budget documents showed on Wednesday.</p> <p>Some politicians have expressed concerns about China’s involvement in Britain’s nuclear industry and the government on Tuesday also launched a new funding model it hopes will entice more British backers to new projects. </p> <p>Britain aims to reach net zero emissions by 2050, which will require a huge increase in low-carbon power generation such as wind, solar and nuclear, but new nuclear projects have struggled to secure funding due to the large up-front costs.</p> <p>The government said it would “provide up to £1.7 billion of new direct government funding to enable a final investment </p> <p>decision in a large-scale nuclear project this Parliament, subject to value for money and approvals,” the documents showed.</p> <p>France’s <span class="caps">EDF</span> is building Britain’s first new nuclear plant in more than two decades, Hinkley Point C, with backing from China’s <span class="caps">CGN</span>, which is expected to cost 22 billion-23 billion pounds. Britain has plans to build a second new plant, Sizewell C, in which <span class="caps">CGN</span> also has a 20% stake in the development phase.</p> <p>The government document said Britain is in active negotiations with <span class="caps">EDF</span> over the Sizewell C project.</p> <p>Under the regulated asset-based (<span class="caps">RAB</span>) model, companies building new plants would be paid during the construction phase, cutting their development risk and allowing them to secure cheaper financing for the projects.</p> <p>The <span class="caps">RAB</span> model would also require that households pay a small amount each month for new plants while they are still being constructed.</p> <p>($1 = 0.7280 pounds)</p> <p/> </div>