Chart of the week | Quantum leap: new nuclear and future levy costs

An FT article published today claims the government is edging closer to a deal on the Wylfa new nuclear power station. It is reported the government is seeking a 20% discount on the CfD agreed with EDF for Hinkley Point C, which would mean a strike price of £77.5/MWh (in 2011-12 prices).

In this week’s Chart of the week, we estimate that this means annual support from consumer levies of approximately £0.81bn to the 2.9GW plant, compared to the £1.2bn to £.3bn required for Hinkley Point C (2017-18 prices). The developers are currently targeting a 2025 connection date. However, we have used 2028, to better represent the relative progress of Wylfa in comparison to Hinkley.

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