Korean energy firm considers investment in Wylfa Newydd
AKOREAN state-owned energy company is looking at buying into Wales’ £10bn nuclear power plant.
Korea Hydro & Nuclear Power (KHNP) has, according to the Sunday Times, held talks with Horizon Nuclear Power abouut investments in the Wylfa Newydd site on the Isle of Anglesey.
Horizon Nuclear Power is a wholly-owned subsidiary of the Japanese firm Hitachi.
Hitachi has been unwilling to pay for the whole £10bn project on its own and has been actively seeking investors.
KHNP would be expected to invest in Horizon as a minority shareholder and, according to the report, is hiring UK advisers.
Horizon has said it can “learn lessons” from last month’s critical National Audit Office report into the Government deal for the new nuclear power plant at Hinkley Point.
The Department for Business, Energy and Industrial Strategy (BEIS) finalised the deal to support the £18bn Hinkley Point C reactor last September, with energy consumers paying subsidies on their bills for the scheme for 35 years.
The Audit Office report into the deal with EDF Energy says the Government has locked consumers into a “risky and expensive project” with uncertain benefits.
The French energy giant admitted earlier this month that the Somerset nuclear power plant was 15 months behind schedule and costs had gone past £20bn.
Horizon said the report from the Audit Office highlighted the challenges it faces.
A Horizon spokesman said: “The report rightly highlights both the benefits of new nuclear and the challenges that we need to address.
“We are confident, given the tried and tested nature of our technology and if we learn lessons from the NAO’s report, that we can meet these challenges and deliver at a competitive price.
“We welcome the recognition in the report of the role nuclear can play in helping the UK achieve a lowcarbon electricity mix at the lowest cost, and that this is a view supported by a wide range of independent energy analysts.
“Our lead project, Wylfa Newydd, will be a vital part of the UK’s energy future, alongside other nuclear projects as well as renewables.
“We also recognise the need to continually remake the case for new nuclear, including on cost, as the report sets out. The benefits of nuclear in terms of clean, reliable and secure electricity are clear, but these must also be delivered at a price that works for consumers, the Government and investors.
“We will continue to work with all parties, including the UK Government, to ensure that our project meets this test and the report highlights many of the key areas that we are already considering.”
At Hinkley, the Government agreed a “strike price”, of £92.50 per megawatt/hour, but it is understood that Horizon’s strike price will need to be lower.