The UK Government is considering a multibillion pound investment in a new nuclear power station, as well as underwriting billions of pounds of loans.
Business Secretary Greg Clark has given MPs details of a possible funding deal for the proposed Wylfa Newydd plant in Anglesey.
The Government would make a direct investment in the project alongside the Japanese government and Horizon Nuclear Power, a subsidiary of Japanese giant Hitachi, which is developing the project.
The union GMB has welcomed the expected go ahead for Wylfa. Although Greg Clark said no decision has yet been taken to proceed.
We may be witnessing an outbreak of energy policy common sense that should set a new precedent for our vital energy infrastructure projects.
Justin Bowden, GMB NATIONAL SECRETARY
There are few challenges more important than securing a sustainable energy future as part of our modern Industrial Strategy. By entering into negotiations, the UK Government is also highlighting the attractiveness of Wales as a place to do business and invest.
This would be the biggest infrastructure project in Wales for a generation and could bring significant benefits to the economy through increased high-quality employment and supply chain opportunities.
Secretary of State for Wales Alun Cairns We will now be entering into negotiations with Hitachi on the next phase of the Wylfa project.
Both the National Audit Office and Public Accounts Committee have recommended that the Government consider variations from the Hinkley Point C financing model in order to reduce costs to consumers.
Greg Clark, Business Secretary
First Minister, Carwyn Jones, also welcomed the announcement:
It is a highly significant milestone for the Wylfa Newydd project, which has the potential to transform the Welsh economy.
Carwyn Jones AM, First Minister But he also called on the UK government to make a decision on the Swansea Bay Tidal Lagoon:
The Welsh Government recognises the importance of a diverse mix of low carbon technologies for Wales. This is why today’s Wylfa announcement is such an important milestone and why I have called repeatedly on the UK government to make a decision about the Swansea Bay Tidal Lagoon project.
I once again reaffirmed to the Secretary of State that the Welsh Government is ready to work with the UK Government to make the Tidal Lagoon a reality and seize the opportunity to position the UK as a world leader in new low carbon technologies.
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Carwyn Jones AM, First Minister Some have criticised the announcement.
This announcement takes us a step further towards a calamitous mistake by a Government who are utterly failing on energy policy.
Taking a stake in this nuclear monstrosity would see taxpayers locked into the project, and paying out for a form of electricity generation that's not fit for the future.
Caroline Lucas, co-leader of the Green Party The notion that new nuclear will be good value for money is farcical when it's so much more expensive than cleaner, safer renewable alternatives that are faster to build.
Kate Blagojevic, head of energy at Greenpeace UK 