The spokesman also dismissed suggestions that the delay in giving the green light to Hinkley was down to Government dithering rather than any substantive change in the terms of the deal.
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Hinkley Point C, Britain’s first new nuclear power station in a generation, will go ahead after the government today confirmed it has approved the project following a last-minute review.
“Having thoroughly reviewed the proposals 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”, Business Secretary Greg Clark said in a statement.
Ministers said the agreement comes with new conditions which will give the government greater oversight and prevent investors from selling off their shares without permission. The first is that China will not be able to take a full stake in Hinkley, once operational, without government intervention.
“After Hinkley, the British Government will take a special share in all future nuclear new build projects”. This, it says, will ensure significant stakes can not be sold without its knowledge or consent.
However, the new deal has made no change to the price and the amendments to the agreement have centred on ensuring national security.
The announcement was welcomed by EDF. It will be the first new nuclear plant built in the United Kingdom for more than 20 years. “It demonstrates the UK’s desire to lead the fight against climate change through the development of low carbon electricity”.
It is also good news for the overall economy as it helps to guarantee the stability of our future energy supply’.
The government estimates that the new plant will provide 7% of Britain’s power over the next 60 years.
“CGN and EDF have worked together in close cooperation for decades and this has laid a solid foundation for these three new nuclear projects”.
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.
EDF Chief Executive Officer Jean-Bernard Levy has said Hinkley Point is key to ensuring the health of the French nuclear industry and providing work for struggling nuclear group Areva SA.
Hinkley Point C nuclear power station site is seen near Bridgwater in Britain, September 14, 2016.
Chinese state-owned company CGN, which has a third stake in the scheme, said it was “delighted” with the decision. EDF said it had agreed with the government to retain control of the project. “This includes clearing our tried and tested reactor technology for deployment in the United Kingdom, consulting across North Wales on our plans and the huge economic opportunities they will deliver, and working with Government on a deal that delivers at a fair and acceptable price for all”. The $8 billion investment by the company is linked to the opportunity to build its own nuclear reactor, using domestic Chinese technology in Essex in southeast England.
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Clark said the Hinkley Point project would “inaugurate a new era of United Kingdom nuclear power” and help cut greenhouse gas emissions, which must fall by 80 per cent on 1990 levels by 2050.
