U.K. offering subsidies for new nuclear power plants

In an effort to keep energy costs down over the long term, ministers in the U.K. are offering contracts guaranteeing subsidies for as much as 40 years to companies who will build new nuclear power plants in the country, according to reports.

The move is a reversal of an agreement made between Liberals and Conservatives in 2010, under which ministers promised that no nuclear plants would be built in the country with public subsidy.

Cost overruns for new nuclear build around the world as well as the exit of a number of utilities from the U.K. in recent years led the government to backtrack on its position.

In an effort to ensure that the price of electricity remains below £100 ($155.21) per MWh, ministers are proposing contract extensions with state subsidies from the original 20 years to 30 and 40 years.

Officials in the U.K. government have said that building nuclear reactors offers protection against relying too much on any one generation technology.

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