(Bloomberg) – The UK government has proposed a bill to help boost investment in new nuclear power plants, a move that will help Britain reduce its carbon emissions and which will in part be borne by consumers.
Britain will build on a funding model previously used to fund new airports and water projects, reducing its dependence on foreign capital, the government said in a statement. The so-called regulated asset base model, or RAB, is designed to encourage private sector investment by diluting the construction risk borne by the taxpayer and the developer.
Nuclear power is a key part of a strategy to maintain the supply of low-carbon energy sources as the UK seeks to meet its goal of net zero by mid-century. The bill would give the country’s aging fleet a much-needed boost, with five of the UK’s eight nuclear power plants set to be permanently shut down by 2024.
Britain currently derives around 16% of its electricity from nuclear power plants and there is currently only one new large plant under construction in the UK, Hinkley Point C of Electricité de France, which is expected to be completed in 2026. £ 20bn from EDF ($ 27.6bn) The Sizewell C plant in the south-east of England could be the first to benefit from the new financing model. The government had explored ways to pull out the state-owned China General Nuclear Power Corp. of the project.
The cost to consumers will be less than £ 1 per month on average during the construction phase of a project, the government said.
© 2021 Bloomberg LP