The UK has eight nuclear power plants which generate around 20% of domestic power needs.
Advertisement
“It will also be a boost for the supply chain, which includes NOF members that are experienced in the nuclear sector or have transferable products, services and skills that can be applied to projects such as Hinkley Point C”. The deal is key for China as it could help the country eventually export its nuclear technology to developed country markets.
The government said it would be able to block the sale of EDF’s controlling stake before or after completion of the project, under the new safeguards – a proviso it said it would apply to significant stakes in all future nuclear projects.
The plant’s two pressurised water nuclear reactors (EPRs) will provide around 3,200 megawatts, or seven percent of the UK’s electricity requirements, for about 60 years.
Hinkley Point C nuclear power station site is seen near Bridgwater in Britain, September 14, 2016.
Britain gave the go-ahead for a $24 billion nuclear power plant on Thursday, ending weeks of uncertainty that strained ties with China and France but also signaling a more cautious approach to foreign investment in critical infrastructure projects.
Business groups broadly welcomed the announcement as an encouraging sign that major United Kingdom infrastructure projects were going ahead, but some also raised concerns about the cost of the Hinkley development.
Announcing the approval of the project in a statement, the United Kingdom government said that in future, the government would take a share in all new nuclear projects to “ensure that significant stakes can not be sold without the Government’s knowledge or consent”. The construction will be paid for by EDF and Chinese state-backed CGN group, which will pay two thirds and one third respectively. After the station is operational, the United Kingdom government will also retain the ability to intervene if EDF tries to sell its stake.
Under a deal worked out in October a year ago, EDF will take a two-thirds stake in the twin-reactor Hinkley Point C power station, while China’s CGN will take a third.
Justin Bowden, national officer of the GMB union, said: “Giving the thumbs up to Hinkley is vital to fill the growing hole in the UK’s energy supply needs”. At Flamanville in France, where the utility is building a reactor of the same design proposed for Hinkley Point, costs have more than tripled to 10.5 billion euros ($11.8 billion) and construction is six years behind schedule.
However, John Sauven, Greenpeace executive director said: “Today’s decision hasn’t been made on the cold, hard facts that show Hinkley will not deliver competitively priced, low carbon energy any time soon”. Shadow energy minister, Barry Gardiner said it was “too high a price” and it should have been renegotiated.
Advertisement
Approval by the government has come with conditions.
