The British government has given the green light to a controversial new nuclear power station at Hinkley Point after prime minister Theresa May ordered a review.
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Business and Energy Secretary Greg Clark said the Hinkley Point deal “will include a series of measures to enhance security” and ensure it can not change hands without the government’s agreement.
The new plant in Somerset in the south west of England is being financed by French company EDF and the Chinese government had pledged seven billion euros, if it could then lead a Chinese-designed power plant in Essex.
Government says UK-based businesses will benefit from more than 60% of the £18 billion value of the project, and 26,000 jobs and apprenticeships will be created.
The Contract for Difference would provide a set price of £92.50 per megawatt hour of electricity provided by Hinkley Point C for 35 years once it begins generating.
Levy said there could yet be further changes to size of EDF’s 66 pct stake but undertaking means its will stay above 50 pct in Hinkley Point.
It will be built by French-owned EDF, and there have been concerns about the high cost that Britain has agreed to pay to the company for the electricity generated at Hinckley Point – as well as the reactor’s design.
A blog post written previous year by Prime Minister May’s new chief of staff exposed concerns about United Kingdom energy security and cast a shadow over British-Chinese relations.
Welcoming the decision, the business lobby group CBI said: “Investors are hungry for further signs from the government that the United Kingdom is open for business”. This decision must be the first of many, with new nuclear, renewables, gas and shale investment all critical to meeting the needs of businesses and consumers.
“Existing legal powers, and the new legal framework, will mean that the government is able to intervene in the sale of EDF’s stake once Hinkley is operational”, the statement added.
“The emphasis must now be on delivering the Government’s vision of a wider nuclear programme in the United Kingdom and we remain focused on continuing to make strong progress with our lead Wylfa Newydd project”.
The Chinese agreed to take a stake in Hinkley, which will meet 7% of Britain’s energy needs, and to develop a new nuclear power station at Sizewell in Suffolk on the understanding that the United Kingdom government would approve a Chinese-led and designed project at Bradwell in Essex, which has raised questions over national security.
In a statement, Ms May’s government said it had made a decision to proceed with the project in central England after a comprehensive review, but was clear Britain would have greater control over future deals when foreign states were involved in buying stakes in “critical infrastructure”. The power plant will be the UK’s first new nuclear facility in 20 years.
The government has stamped through the final approvals needed to get the French and the Chinese in to show us how it’s done and build Hinkley Point C.
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Executive director John Sauven said: “Support for Hinkley is at rock bottom”.
