An official statement said the British government had chose to approve the country’s first nuclear power plant in two decades following a new agreement with EDF, but added that new measures would be taken to enhance security.
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The project will proceed under the condition that EDF won’t be able to sell down its controlling stake in the project prior to completion of construction without United Kingdom government approval, the Department for Business, Energy and Industrial Strategy said in a statement Thursday. These include the right to prevent the sale of EDF’s controlling stake in Hinkley before completion of the power station, to be confirmed in an exchange of letters between the government and EDF. The government will also be able to intervene in the sale of EDF’s stake once the plant is in operation.
Critics of the deal have warned of escalating costs and the implications of nuclear power plants being built by foreign governments.
The UK Government issued the following press release on September 15: “Government confirms Hinkley Point C project following new agreement in principle with EDF – Ministers impose significant new safeguards for future foreign investment in critical infrastructure”.
“When it begins producing electricity in the middle of the next decade it will provide 7 percent of the UK’s electricity needs; giving secure energy to 6 million homes for 60 years”, he said.
The decision was postponed by the government in July.
Chinese state media on Thursday welcomed Britain’s approval for the Hinkley Point nuclear plant but attacked “China-phobia” in London, after new conditions were attached to the mammoth project.
The French government, majority owner of EDF, said Hinkley Point was a “major step in Franco-British energy and industrial cooperation” and good news for the French nuclear industry.
“This will ensure that significant stakes can not be sold without the Government’s knowledge or consent”, the BBC reported.
“The benefits of restarting the new nuclear supply chain and experience from Hinkley Point C is expected to lead to lower costs for following United Kingdom nuclear projects”.
In exchange, China wants to use its design for new United Kingdom nuclear stations.
Another issue is that in 2013, the Government agreed it would buy power from the plant for £92.50 per megawatt hour, rising in line with inflation, for 35 years once the plant is operational.
Horizon, a nuclear new build group in Britain owned by Japan’s Hitachi’s, said it was “entirely comfortable” with the new approach.
China’s CGN welcomed the Hinkley decision and said it was now “able to move forward and deliver” nuclear capacity at two more planned United Kingdom reactors, one of which is expected to be Chinese-designed, as well as financed.
The Liberal Democrats said Hinkley was a “waste of public money”.
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“There are still huge outstanding financial, legal and technical obstacles that can’t be brushed under the carpet”, John Sauven, U.K. director at Greenpeace, said in a statement.
