The introduction of the Regulated Asset Base (RAB) model is welcomed as a better alternative to the Contracts for Difference (CfD) scheme for nuclear developments. However, financing new nuclear projects is not straightforward and there will still be challenges under the RAB model. For a development to progress at Wylfa, important issues still remain regarding financial commitment. (Paragraph 47) Nuclear energy in Wales 27

The introduction of the Regulated Asset Base (RAB) model is welcomed as a better alternative to the Contracts for Difference (CfD) scheme for nuclear developments. However, financing new nuclear projects is not straightforward and there will still be challenges under the RAB model. For a development to progress at Wylfa, important issues still remain regarding financial commitment. (Paragraph 47) Nuclear energy in Wales 27 Type: conclusion | Number: 8 | Response status: not_addressed Government response: As a tried and tested funding model for large-scale infrastructure projects, the Government believes that using RAB could encourage private sector investment and cut the cost of projects by reducing the cost of project finance, the biggest driver of new nuclear project costs. We recognise the import