Government presses ahead with CfD plans for nuclear extensions

The Government is pressing ahead with plans to enable existing nuclear generating stations to become eligible for CfD support to extend their lifetime.

A consultation on the proposal had highlighted the importance of maintaining existing generation and that in many cases nuclear plants can continue operating beyond their initially anticipated lifetime with investment.

It said responses had shown broad support for the plans with many respondents “emphasising the value-for-money, energy-security, and decarbonisation benefits” of extending existing nuclear assets.

However there were concerns expressed about potential market distortions and increased costs to consumers.

The Government said any award of a CfD for a nuclear lifetime extension project will be subject to “robust value-for-money and subsidy-control assessments”.