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Government calculates cost of generating electricity

Energy secretary Amber Rudd has launched a project to examine the actual cost of electricity generation, This is Money has reported.

It will include not just the cost of constructing offshore wind farms, for example, but also of connecting them to the national grid. It will also examine nuclear power and conventional energy.

The study is being conducted by Frontier Economics, which is chaired by former cabinet secretary Lord O’Donnell.

The review comes amid opposition to the government’s plan to build two new nuclear reactors – Hinkley Point C – in Somerset.

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