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UK nuclear deal could "displace" precious renewables funding

Investment in renewable energy in the UK could be at risk if construction on EDF’s Hinkley Point nuclear power station – the first nuclear power station to receive planning approval in the UK since Sizewell B over two decades ago- is allowed to proceed, according to environmental group Greenpeace.

The statement comes as the Department of Energy and Climate Change (DECC) gave the massive 3.26 GW project the green light, in an effort to get the government’s ambitious 16GW new nuclear programme of the ground.

“The project should not proceed on the grounds it is unfair to consumers, will lock the UK into high priced nuclear for decades to come, and will displace investment in renewables,” Greenpeace said in a briefing released on Monday.

One likely consequence of the government caving to EDF’s demands is that the eight other nuclear projects in the new nuclear programme will feel more confident about striking a similar deal. “If EDF succeeds in setting a relatively high strike price, this would certainly encourage other investors to look at new nuclear in the UK again and encourage them to ask for a similar strike price,” Claudia Belahmidi, analyst at IHS told Renewable Energy Focus.

IHS’ analysis does not support the notion that nuclear would replace subsidy for renewables completely, but Belahmidi admitted that funds are limited. “Given the intermittency and limited scaling options for renewables, expensive support for nuclear will certainly divert some funds away from wind and solar projects,” she said.

Analysis: Could nuclear displace UK renewables investment?

 

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Comments

R ANNETT said

22 March 2013
This is a green light to looming disaster. i don't know how they have done this but it does not feel right when other countries are ditching dirty nuclear. I bet the nukes will dump their waste in this country too. they should be made to take back to america and france where the holding company resides.
What is more annoying is that we need to go to the end game of no nukes. we ned a 100% renewable strategy like scotland is getting to. With some pumped storage, a bunch of tidals and several wave machines plus a push on with offshore wind we can do it. Add to that a HVDC international grid system and an intelligent grid back home we again can do it. Add to that zero carbon homes and offices and again, we can do it. We do not need nukes. Have some detirmination and leadership and move forward with renewables.

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