Seeking to reassure citizens concerned about the foreign financing, May’s government said it is instituting new controls on foreign investment.
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It added: “There will be reforms to the government’s approach to the ownership and control of critical infrastructure to ensure that the full implications of foreign ownership are scrutinised for the purposes of national security”.
But in a signal that the new requirements may not be very stringent, both EDF and China General Nuclear (CGN) said they were delighted by the approval, which they claimed will let them proceed with Hinkley and their wider plans for nuclear construction in the United Kingdom in future. By enabling the government to block changes in major shareholders, the new framework will guard against excessive concentration of Chinese money or technology in United Kingdom nuclear plants.
Theresa May’s decision to approve the construction of the £18bn Hinkley Point power station opened the door to China taking a large stake in generating Britain’s nuclear energy.
“However, the Bradwell project will also need to go through the same planning and independent regulatory processes required for all new build projects, and meet all the requirements as a result of the new regime we are bringing”. Experts also say the launch of the project will boost the construction of nuclear power stations around the world..
The announcement comes after the government halted the deal to run a review.
But Labour’s shadow energy secretary Barry Gardiner said: “The Government created a commercial crisis, sent shockwaves through the industry and unions alike and risked a diplomatic dispute with one of our key future trading partners”.
The plant will deliver energy at a price of £92.50 per megawatt hour for 35 years. It is effectively subsidised by the United Kingdom taxpayer under the terms of the guaranteed “strike price” that will be paid by consumers for the electricity generated.
EDF’s board had already approved its participation in the project in southwest England in July when May’s government suddenly announced it was pausing it. At its peak, 5,600 people will work on site, while the finished plant will employ 900 people.
When the then Lib Dem secretary of state, Ed Davey signed off on the original proposals for a nuclear power plant in Hinkley, the plans made economic sense.
“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.
The French and Chinese governments both hailed the project’s approval.
“The strike price (the cost of electricity) for nuclear plants is generally substantially lower than those for renewable energy”, he said. “This marks a major milestone in Franco-British industrial and energy cooperation”, French Finance Minister Michel Sapin said in a statement.
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Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, 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”.
