The UK and EDF (Euronext: EDF) are reportedly close to agreement on the terms of a contract to enable the French energy utility to commence building the country’s new generation of nuclear power plants.
The Independent reports that both parties are almost finished negotiating a 35-year deal after reaching an agreement on subsidies.
Energy Secretary Ed Davey is set to award planning permission for EDF's power plant in Hinkley Point on March 19, a day before the budget, the paper reported.
Negotiations had centered on how long a subsidy could be guaranteed with focus revolving around the "strike price", or the minimum EDF would be paid for any electricity generated.
Citing industry sources, the paper said the strike price being discussed was about 96 to 97 pounds per MWh, towards the bottom end of the anticipated 95 to 99.50 pounds range.
EDF's demand for a 40-year guarantee in exchange for a relatively low price has been a sticking point for the deal.
This article first appeared in Power Engineering International magazine. It was republished with permission.