The UK Government has delayed its decision on the controversial Hinkley Point C nuclear power station, despite its French owner EDF giving the project the go-ahead.
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In a momentous moment for the United Kingdom and for Anglo-French-Chinese relations, EDF on Thursday approved the funding for two nuclear reactors at Hinkley Point C power station.
Speaking before the government’s new review into the project, John Sauven, Greenpeace executive director, said there is no evidence that Hinkley can be built on time or on budget.
According to the BBC, contracts between EDF and the UK government were to be signed on July 29, but Vincent de Rivaz, EDF Energy CEO, canceled his trip to England after UK Business Secretary Greg Clark said the government would “consider carefully” before backing Hinkley Point C. The government’s about-face came as a surprise to EDF.
However, the Hinkley saga faced fresh delays after the UK Government last night announced it will review the deal before signing it off, with a decision now likely in “early autumn”.
One-third of the 18 billion pounds cost is being provided by Chinese investors.
As well as EDF, the project will be part-funded by the China General Nuclear Power Corporation.
And the 10-7 vote in favour by the EDF board was warmly welcomed by the Somerset Chamber of Commerce and local suppliers as being a great shot in the arm for the Somerset and South West economy. EDF said earlier this week it would issue new shares to raise €4bn for Hinkley’s construction.
There has been criticism that the guaranteed price EDF would be paid for power produced at Hinkley – £92.50 per unit of electricity generated – was too expensive.
Weighing on its viability is the decision of French nuclear company Areva to drop out because of financial difficulties and the subsequent takeover of Areva’s obligations by EDF at the behest of the French government, which owns 85 percent of EDF.
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Image copyright PA Image caption Will Hinkley C be ready by 2025?
French officials met last week to discuss EDF’s position following Hollande’s talks with May and their debate stretched until about 4 a.m., a person with knowledge of the matter said, declining to be identified because the meeting was private.
May’s new Government appear to want to take an in-depth look into the deal and there might be worries about the level on Chinese intervention in a nuclear plant in the UK.
In the United Kingdom, the guaranteed electricity price of GBP92.50 a megawatt hour for the 35 years has been criticized.
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Commons Energy and Climate Change Committee chairman Angus MacNeil said the Government might have put the brakes on the “very bad” deal as it may cost less in the long run to pull out now.
