The government is to publish its long-awaited draft energy bill, designed to encourage major investment in clean energy generation and help increase security of supply.
The bill is expected to outline long-term contracts to encourage investment in nuclear and renewable energy.
Energy Secretary Ed Davey was pressed by Today presenter John Humphrys as to whether the changes amounted to a subsidy for new nuclear.
"There is going to be no public subsidy for new nuclear," he said.
"What we want is a market structure that makes sure we keep the lights on.
"Unless nuclear can be price competitive - as the industry says it can be - these nuclear projects won't proceed".
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