Ed Davey MP
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Ed Davey: 'Essential to power British business'

21 October 2013 Last updated at 08:26 BST

Hinkley Point power station in Somerset has got to be built because nearly two thirds of our electricity-generating capacity is going off line over the next 15 years, according to the energy secretary.

"We've got to replace eight out of nine of our nuclear power stations", Ed Davey has told the BBC.

French-owned energy firm EDF will lead a consortium that includes Chinese investors to build the Hinkley Point C power station in Somerset.

The two sides have now agreed the "strike price" of £92.50 for every megawatt of power Hinkley C generates per hour. This is almost twice the current wholesale cost of electricity.

Mr Davey said it was good value for the consumer.