We could have saved Bill-Payers £31 billion from the cost of HPC !

We could have saved Bill-Payers £31 billion from the cost of HPC !

EXTRA, EXTRA – READ ALL ABOUT IT !!

Copied this leaked 'newsflash' from the webpage of 'Frank A Kenuce Energy Investments':

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Rumours abound around the corridors of the BEIS.

Greg Clark asked – How come Moray East Offshore Windfarm (MEOW), which will only generate electricity for a third of the time, will be built miles out at sea, has to wait for calm seas to get repairs done and only lasts for 25 years, can manage to sell their electricity for £57.50/MWh for the first 15 years?

Whereas, Hinkley Point C (HPC) generates 90% of the time, is being built in a very pleasant part of the Country, has a complete infrastructure for O & M (Operation & Maintenance), carries on generating for 60 years, but still ‘needs’ paying  £92.50/MWh for its first 35 years!

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Of course, he’ll never tell us the answers he got back, because the Coalition Government’s negotiator – the Tory appointed Ed Davey, had every drop of blood squeezed out of him by pro-negotiator Vincent De Rivaz.

Davey, caught between a rock and a hard place and in need of progression towards meeting mandatory carbon targets, knew HPC would give him 7% of low-carbon electricity needs at one fell swoop. So it was £92.50/MWh or walk-away nothing; nothing was not an option!

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But it’s said that the coincidence of HPC costing £18,000 million and MEOW £1,800 million made him demand some cost and earnings figures for 10x MEOWs, compared to HPC  - with HPC getting the £57.50/MWh CfD rate, instead of £92.50.

It had been pointed out to him wind turbine generation degrades by about 1.6% p.a.. 
‘Powering 950,000 homes’ [from MEOW’s website], drops to 758,000 homes after 15 years and down to 645,000 homes by the end of its 25 year lifespan. Earnings in the 25th year are almost down to 50% of the earnings in the 1st year.

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To keep it simple, he just wanted the main cost factors – CAPITAL, 'O & M' and 'DECOMMISSIONING' – deducting from the earnings. The O & M [+ Fuel]figure for nuclear is lower than offshore wind, which is understandable considering the 'calm-seas' access issue. However, HPC has a massive decommissioning/waste handling/storage cost, whereas offshore wind decommissioning cost is only a small % of of capital cost.

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HPC Earnings:

At £57.50/MWh for 35 years, £50,773 million.

At (today’s) £42.00/MWh for 25 years, £26,490 million.

Total: £77,263 million.

HPC Costs:
Capital: £18,000 million

O & M [+ Fuel] @ £16.14/MWh: £24,442 million.

Decommissioning/ Waste Handling and Storage £7,300 million.

Total: £49,742 million.

HPC 'Earnings – Costs': £27,521 million.

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10 x MEOW Earnings:

At £57.50/MWh for 15 years: £24,211 million.

At (today’s) £42.00/MWh for 10 years: £9,940 million.

Total: £34,151 million.

10 x MEOW Costs:
Capital: £18,000 million.

O & M: @ £19.78/MWh: £12,854 million.

Decommissioning at £200,000/MW: £1,900 million.
Total: £32,754 million

10 x MEOW 'Earnings – Costs': £1,397 million.
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For Greg: REALITY BECKONS

At a CfD rate of £57.50/MWh, HPC’s 'Earnings – Costs' is 19.7X as much as the figure for the same amount of money invested in offshore wind.

At £92.50/MWh instead of £57.50/MWh for 35 years, the poor old bill-payers, will be forking out £76,028 million'!! 'Donating’ a top up to HPC's 'JACKPOT' of:

HPC 'Earnings – Costs': £76,028 -£45,123 million = +£30,905 million.

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£31 Billion, Give or Take!!!

BEST TO KEEP SCHTUM, EH GREG !!!