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<p>Through our Contracts for Difference scheme, which is our main mechanism for supporting
new renewable electricity generation projects, contracts are awarded in a series of
competitive auctions, with the lowest price bids being successful - which drives efficiency
and cost reduction. The scheme has been a success, delivering substantial new investment
and helping deliver significant reductions in the costs of some renewable technologies.</p><p>
</p><p>In addition, the UK is likely to need significant new nuclear capacity in order
to meet our carbon reduction commitments. We have always been clear that new nuclear
must provide value for money. To that end, the Government’s Nuclear Sector Deal has
set out a target for a 30 per cent reduction in the cost of new build projects by
2030. The Government is also considering direct investment in the Wylfa project alongside
other parties and is reviewing the viability of a regulated asset base model for future
projects.</p>
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