Consumers will not "pay a penny" for Hinkley's construction until it generates electricity, the energy minister told parliament.
Greg Clark said the proposed 'strike price' of £92.50 MW/h, which would reduce to £89.50 MW/h if Sizewell C is built, contains important elements of insurance against cost overrun and future high gas prices.
He added the price "compares broadly" to costs of other clean energy.
He said the Hinkley deal "rebooted" the nuclear industry and that costs would reduce as new nuclear stations open, five of which are proposed.
It must be stressed that the contracts negotiated places all the construction risk on investors alone.
Consumers will not pay a penny unless and until the plant generates electricity.
Why does the government want a new nuclear plant at Hinkley Point and why has it proved so controversial?
Government officialscan't provide any detail about how a national security test for future critical infrastructure deals will be applied.
The government approved new nuclear power plants back in 2006 but the plan for Hinkley was only given the go ahead 10 years later.