Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what the evidential basis is for his statement to the House of Lords Economic Affairs Committee on 8 September 2015 that the cost of new nuclear power is substantially cheaper than any other low-carbon technology; what the current (a) strike price, (b) length of contract and (c) loan guarantees are available for (i) onshore wind, (ii) offshore wind, (iii) large scale solar, (iv) other renewable electricity technologies and (v) nuclear power; and if he will make a statement.

Nuclear power is the cheapest low carbon technology that can provide baseload power, i.e. constant generation compared to the intermittent generation of renewables like wind and solar. The Hinkley Point C strike price is £92.50.MWh (reduced to £89.50/MWh if Sizewell comes forward) for 35 years. An initial guarantee of £2bn has been offered.

The government supports large scale low carbon generation through Contracts for Difference, which offer a standard tenor of 15 years. The 2015 administrative strike prices are available through https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263937/Final_Document_-_Investing_in_renewable_technologies_-_CfD_contract_terms_and_strike_prices_UPDATED_6_DEC.pdf

Auction results are available through https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/407465/Breakdown_information_on_CFD_auctions.pdf

The UK Guarantee Scheme is open to major infrastructure in sectors such as energy, transport, and communications. The scheme, which covers all sectors, will provide up to £40bn of guarantees. It was set up to support investment in infrastructure projects which may have been delayed by adverse conditions in the financial markets, without ‘crowding out’ private sector investment where it is available. The scheme is currently set to close to new projects in December 2016.

A list of projects that have successfully used the scheme can be found at https://www.gov.uk/government/publications/uk-guarantees-scheme-prequalified-projects/uk-guarantees-scheme-table-of-prequalified-projects