Britain plans to adopt a new model to finance its nuclear power expansion that will make households pay for new plants while they are being built, through energy bills, the government said Tuesday.
The UK aims to achieve net zero emissions by 2050, which will require a huge increase in low-carbon power generation such as wind, solar and nuclear.
The country hopes to build several new nuclear plants to help replace aging coal and nuclear facilities and reduce greenhouse gas emissions, but developers have struggled to finance new projects.
The new law for financing nuclear energy will propose the use of a regulated asset-based model (RAB), whereby companies building new plants would receive a payment during the construction phase, reducing the risk associated with development and allowing them to obtain cheaper financing for projects.
Proponents claim that this model, previously used in the UK to finance monopolistic infrastructure assets such as water, gas and electricity networks, would end up reducing the cost of new projects for consumers.
His detractors claim that taxpayers will be responsible for extraordinary expenses and construction delays.
The Government has stated that the system will probably add a few pounds to household bills during the early stages of construction and, on average, less than a pound per month throughout the construction phase.
He also estimated that the model could save more than 30 billion pounds ($ 41 billion) over the life cycle of a new nuclear project and attract funding from British financial institutions.
“The current financing scheme caused too many foreign nuclear developers to leave … We urgently need a new approach to attract British funds and other private investors,” Secretary for Business and Energy Kwasi Kwarteng said in a statement. .