The SNP stated the financial uncertainties surrounding Areva – a shareholder in the Hinkley Point C development and the designer of the proposed reactors – demonstrate the foolishness of the government’s support for the technology.
The French company’s shares plummeted after it warned it must suspend future profit predictions because of problems centred on a nuclear project in Finland.
The development of the Olkiluoto 3 project and another at Flamanville in France, are massively over-budget and behind-schedule, negatively impacting on the company’s cashflow for 2015.
Areva – which is 87 per cent owned by the French government – also blames a slower than expected restart for its Japanese reactors after the 2011 Fukushima nuclear accident and a “still lacklustre” nuclear market for the decision.
EDF is set to be awarded a 35-year contract for difference (CfD) with a strike price of £92.50/MWh for Hinkley Point C (£89.50/MWh if it builds the Sizewell). Renewable technologies are set to be awarded 15-year CfDs by the UK government.
The SNP’s energy spokesperson Mike Weir said: “Despite the mounting evidence that it is hugely expensive with other stations going vastly over budget and being years behind schedule the UK government are determined to continue to throw billions of pounds into promoting new nuclear.
“By diverting money away from renewables to new nuclear the UK Government’s plans are also damaging the renewables sector.”
He added that the Hinkley deal is “a bad deal that will push up bills and cost the taxpayers a fortune for many, many years to come” and that Scotland “neither needs nor wants new nuclear”.