Nuclear Finance Revamp Will Attract U.K. Pension Funds, EDF Says
- New model meant to help build low-carbon atomic power plants
- Government wants to remove Chinese investment in Sizewell C
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The U.K.’s proposed overhaul of the financing mechanism for nuclear power plants will attract more local investors, making the government less dependent on Chinese money for infrastructure projects, said the developer of the 20 billion-pound ($26.9 billion) Sizewell C project.
A bill passing through parliament implements the regulated asset base, or RAB, model to encourage private-sector investment in nuclear power and dilute the construction risk shouldered by U.K. taxpayers and developers. A key element is the link to the Consumer Price Index, thus making it an attractive investment for U.K. pension funds, according to Electricite de France SA.