But the statement did not mention the role of Chinese investment in the power plant, a 18-billion-British-pound (23.6-billion-dollar) project that will be built and mainly funded by EDF.
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In response, the United Kingdom has set out new restrictions on the project’s builders, saying the companies would not be able to sell their stakes in the plant without prior approval from the government.
The Chinese agreed to take a stake in Hinkley and at Sizewell on the understanding the United Kingdom government would approve a Chinese led and designed project at Bradwell. Going forward, the British government will take a stake in all nuclear power projects, giving it control over a change of ownership.
This follows national security concerns over Chinese involvement in the project that is understood to have prompted Theresa May to put the brakes on the deal at the beginning of the summer so she could scrutinise the terms.
French energy company EDF hailed the decision to go ahead with the $24 billion Hinkley Point C facility, which could meet close to 10 percent of the country’s energy demands and add as many as 26,000 jobs to the British economy.
On top of that, some think it’s risky to have the Chinese state indirectly involved in a crucial aspect of the UK’s infrastructure – our electricity. That will prompt some to ask what the hiatus since July’s surprise review has really achieved.
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”. “This will ensure that significant stakes can not be sold without the Government’s knowledge or consent”.
For Hinkley Point C, which will be partly owned by China (it’s paying £6 billion of the proposed £18 billion construction cost), the United Kingdom government is preventing EDF from selling its controlling stake without “prior notification and agreement of ministers”.
Hinkley Point C will be funded primarily by France’s EDF Group and its Chinese partner CGN: An arrangement that’s been subject to several reviews by the United Kingdom government.
But Mr Osborne told the BBC’s Today programme: “It looks to me pretty much the same deal”. This agreement will be confirmed in an exchange of letters between the Government and EDF.
EDF’s most recent timeline for Hinkley calls for the plant’s first reactor to come online sometime during 2025.
Clark also said he is “minded” to instruct the Low Carbon Contracts Company to offer EDF the “strike price” of £92.50 per MWh – well above the current wholesale cost of energy.
French Prime Minister Manuel Valls hailed the deal as “excellent news”.
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“While there will always be debate around the cost of major projects, the price of inaction is larger still”.
