Friday, 22 August 2014
So why don't tidal stream projects get long contracts and loan guarantees like nuclear power?
Is the UK Government right to gain plaudits for the announcement of construction of a 6 MW tidal stream project in Pentland Firth? After all, they have come up with a £10 million grant. But, when you compare this with the deal offered to EDF for Hinkley C, there is a credibility gap. There is talk of extending the tidal stream project from 6 MW to '398 MW', but there is very little chance of this happening unless the project gets conditions similar to that given to Hinkley C nuclear power station. First a much longer contract is required. The tidal stream project has to make do with a 15 contract during which time it will receive its premium prices. EDF gets 35 years. Second, EDF gets £10 billion worth of loan guarantees. That's not a grant of course, but it stands a very good chance of turning into one given the history of nuclear power construction cost overruns! Tidal stream developers really need loan guarantees to turn their plans into reality.
But then, as we all know, nuclear power is much newer, more innovative, technology which needs much greater support than tidal stream technology (sarcasm implied here for anybody suffering a tinge of asperger-politics)
See the announcement at