Britain finally gave the go-ahead on Thursday for Hinkley Point, its first nuclear plant in a generation, but set conditions to address concerns over China’s role in a flagship project for Europe’s nuclear sector.
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Existing legal powers, and a new legal framework, will mean that the British government is able to intervene in the sale of EDF’s stake once Hinkley is operational, it said.
Upon becoming Prime Minister, Mrs May delayed her approval amid fears of the security implications of China acquiring a foothold in the United Kingdom power supplies.
The delay, which was ordered by Prime Minister Theresa May shortly after she took office, was seen as a calculated shift away from the ties with Beijing that her predecessor, David Cameron, had cultivated. The new agreement with EDF means the government will have some weight to throw around, though.
“We are involved in all of those projects in the tendering phase”, he said.
State-owned CGN reacted with delight and said it was now “able to move forward and deliver” nuclear capacity at other sites, including Bradwell in Essex and Sizewell in Suffolk. “It is extraordinary that they have not reviewed the price per unit of power”, said Barry Gardiner, the opposition Labour Party’s energy spokesman.
The project is expected to cost about £18 billion (S$32.4 billion).
EDF and CGN are to receive a fixed price of electricity of £92.50 per megawatt hour, rising with inflation, for 35 years. Consumers will effectively pay the difference between that and the market price. Union leaders are smiling, too; at its peak the project will employ over 5,000 people, in addition to the construction jobs it will create.
Olivia Gippner, a fellow in EU-China relations at the London School of Economics said the framework was aimed at China but “by introducing a general national security test rather than focusing only on Chinese investment, this is a very diplomatic solution”. French utility company EDF will contribute the remaining 66.5 per cent. That is exactly what these changes will achieve.
But environmental groups criticised the decision, with Friends of the Earth director Dr Richard Dixon describing the development as “a colossal waste of public money”.
Environmental lobby Greenpeace slammed the decision saying the plant would not produce competitively priced, low carbon power in the near future, and pushed the government to invest in renewable energy at an affordable price.
John Sauven, Greenpeace executive director said: “This deal remains bad value for money for bill payers and taxpayers”.
The French and Chinese governments both hailed the project’s approval.
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He said: “Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley can not change hands without the Government’s agreement”.
