The government isn't quite ready to drop its obsession with nuclear | Nils Pratley

Greg Clark knows nuclear cannot compete with the likes of wind and solar - but he is not giving upThere was excellent news within Hitachi's decision to shelve its plan to build a ?16bn nuclear plant at Wylfa in Anglesey. Finally, a government minister may have grasped the basic problem with nuclear power. It is being "out-competed" by alternative technologies, especially wind and solar, the business secretary, Greg Clark, had to concede in the Commons. Exactly. So drop the obsession with nuclear, last century's answer to our energy needs.As Clark also said, the package offered to Hitachi was generous. The price of the power, at ?75 per megawatt hour, was lower than in EDF's Hinkley Point C contract, but on this occasion the government would have taken a one-third stake and committed to providing all the debt financing for construction. Adjust for the different financial structure and the package looked very Hinkley-like - in other words, hugely expensive for the poor old bill payer. Continue reading...