• 4 hours Shell Oil Trading Head Steps Down After 29 Years
  • 8 hours Higher Oil Prices Reduce North American Oil Bankruptcies
  • 10 hours Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 12 hours $1.6 Billion Canadian-US Hydropower Project Approved
  • 13 hours Venezuela Officially In Default
  • 15 hours Iran Prepares To Export LNG To Boost Trade Relations
  • 17 hours Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 23 hours Saudi Oil Minister: Markets Will Not Rebalance By March
  • 1 day Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 1 day Rosneft Announces Completion Of World’s Longest Well
  • 1 day Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 2 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 2 days Africa’s Richest Woman Fired From Sonangol
  • 2 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 2 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 3 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 3 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 4 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 4 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 4 days GE Considers Selling Baker Hughes Assets
  • 4 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 7 days The Oil Rig Drilling 10 Miles Under The Sea
  • 7 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 7 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
The War That Would Transform Oil Markets

The War That Would Transform Oil Markets

Tensions between Saudi Arabia and…

OPEC Sees Oil Demand Soaring In 2018

OPEC Sees Oil Demand Soaring In 2018

OPEC's latest monthly oil report…

UK Heralds in a New Era of Nuclear Energy with Hinkley Point Deal

UK Heralds in a New Era of Nuclear Energy with Hinkley Point Deal

The UK government has finally agreed a deal with EDF to build the first nuclear power plant in Great Britain for 20 years, the first of many in a new era of nuclear power, according to British Prime Minister David Cameron.

The NY Times reports that Ed Davey, the energy secretary, is proud of the deal struck with the French energy company EDF, and that it will result in an energy bill reduction of £75 by 2030.

The UK guaranteed to buy the energy produced at the plant at a price of £92.50 per megawatt-hour for 35 years. This is reported as double the current wholesale market price, and will fuel protests that the government is paying out massive subsidies for non-carbon fuels, and that the majority of these subsidies will go to France and China, as the two main investors in the project.

Related article: Despite Fukushima, Global Nuclear Power on the Rise

The UK government is already under pressure over claims that its green subsidies, attempting to encourage renewable energy investment ahead of approaching mandates, are causing energy prices to increase.

Prime Minister Cameron proclaimed that “this is a very big day for our country: the first time we've built a new nuclear power station for a very long time … kick-starting again this industry, providing thousands of jobs and providing long-term, safe and secure supplies of electricity far into the future.”

Labour have been quick to criticise the deal struck with EDF, with Caroline Flint, the shadow energy secretary, remarking that “David Cameron is now in the ridiculous position of saying that they can set prices 35 years ahead for the companies producing nuclear power, while insisting they can't freeze prices for 20 months for consumers while much-needed reforms are put in place.”

Related article: California’s Nuclear Headache is Only Just Beginning

Based on the agreed price of £92.50 per megawatt-hour, EDF should make a 10% rate of return on its investment over the lifetime of the project, but the price is actually likely to increase over time, with review dates set for 7.5 years, 15 years, and 25 years after the day that the plant officially begins commercial operations.

According to the NY Times, the two pressurised water reactors planned for construction at Hinkley Point C will cost around £14 billion, begin producing power for the national grid in 2023, and then continue to operate for 35 years. Together they will generate seven percent of the UKs electricity, enough to power 5 million homes.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News