UK $26bn nuclear plant contingent on gas price rise by 127% in decade
RT | October 31, 2013
Britain’s first nuclear plant in 20 years is a bet energy prices will rise. Experts say the new Hinkley Point facility will be “the most expensive power station in the world” and if the bet fails, the deal will prove “economically insane”.
“The Government is taking a massive bet that fossil fuel prices will be extremely high in the future,” the Telegraph quotes Peter Atherton and Mulu Sun, who analysed the finances of British energy companies for stockbroker Liberum Capital.
The deal to construct two nuclear reactors at Hinkley Point in southwest England – the world’s first nuclear deal since Fukushima disaster – was agreed by the UK, Electrcite de France SA (EDF) and China. To have a guaranteed return on the estimated $26 billion investment, the plant owners need the cost of fossil fuel such as oil and gas to rise dramatically.
The Liberum analysts estimate the minimum energy price would need to stand above £121 per megawatt hour within ten years, which means the wholesale price of gas would have to go up by about 127 percent over that period. Wholesale prices were about £60 last year, according to the energy watchdog Ofgem.
This is the equivalent to an oil price of well above $200 a barrel, compared with about $110 this week, the Telegraph reports.
“We are frankly staggered that the Government thinks it is appropriate to take such a bet and underwrite the economics of this power station. We are flabbergasted that it has committed future generations of consumers to the costs that will flow from this deal,” the Liberum Capital analysts say.
The $26 billion (£16 billion) price tag of the two reactors would be enough to build gas-fired power stations with output eight times higher, Liberum calculated.
“For the cost of £16bn for the 3,200MW to be built at Hinkley, the UK could build 27,000MW of new gas-fired power stations, solving the ‘energy crunch’ for a generation.”
Related articles
- EDF to scoop £1bn a year from new plant (dailymail.co.uk)
- A tale of two nuclear Cities: Fukushima and Britain’s nuclear future at Somerset (panokroko.wordpress.com)
October 31, 2013 Posted by aletho | Economics, Malthusian Ideology, Phony Scarcity, Nuclear Power, Timeless or most popular | Électricité de France, British Energy, Energy, Fukushima Daiichi nuclear disaster, Hinkley Point, Infrastructure, UK | Leave a comment
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An Expert Military Analysis of War with China
Actually, None is Necessary
By Fred Reed • Unz Review • December 13, 2020
The Correlation of Armed Forces: U.S. goods and services trade with China totaled an estimated $634.8 billion in 2019. Exports were $163.0 billion; imports were $471.8 billion. The U.S. goods and services trade deficit with China was $308.8 billion in 2019. Trade in services with China (exports and imports) totaled an estimated $76.7 billion in 2019. Services exports were $56.5 billion; services imports were $20.1 billion. The U.S. services trade surplus with China was $36.4 billion in 2019.
There is talk within the Washingtoniat of a possible war with China. Steve Bannon, who apparently was dropped on his head as a child, actually favors such a war. We hear the usual shoo-the-boobs alarm about how the Chinese are doing something terrible and we must gird our loins and American values and show them what for, bow wow, woof. The danger is that the current game of who-blinks-first in Asian waters might actually provoke a shooting war. You know the kind of thing: One warship refuses to get out of the way of another, a collision ensues, some retard lieutenant who signed up on waivers opens fire, and we’re off and running. It is not a good idea to let children play with matches.
The said war is discussed either in emotional terms by idiots or in purely naval terms by those familiar with such things, so we hear of the First Island Chain and the Second Island Chain and whose missiles against the other’s missiles and so on. This would be appropriate if we were fighting World War Two again. Which we aren’t. Let’s take a quick-and-dirty look at how such a war might go.
To begin the war, America would overestimate itself and underestimate China. This is doctrine in the Pentagon. … continue
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