Earlier on Thursday evening, the French company’s board had voted to sign contracts for the construction of two nuclear reactors at Hinkley Point in southwest England, a project that would take 10 years to build and eventually supply about 7 percent of Britain’s electricity.
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French energy giant EDF’s board gave the go-ahead Thursday to the building of a controversial nuclear power station in Britain which has faced fierce criticism over its pound sterling18 billion price tag, a source close to talks said.
The board is expected to give investment approval for the completion of a new plant at Hinkley Point in Somerset.
Plans to build the first new United Kingdom nuclear plant in 20 years have suffered an unexpected delay after the government postponed a final decision until the early autumn.
The main reason for the delay has been worries over the financing of the project by EDF, which is 85% owned by the French government, with French trade unions warning it could ruin the company’s finances.
Gérard Magnin said it was “very risky” in his resignation letter to EDF’s chief executive.
Ever since Tony Blair committed the United Kingdom to new nuclear in 2006, successive governments have argued that new nuclear is necessary as part of our generation mix.
When fully operational, Hinkley Point C would provide up to seven per cent of the UK’s electricity and upwards of 25,000 jobs in the region.
Some industry experts say agreed price levels for a new nuclear plant are generally lower than those for renewable energy.
As part of the final agreements the United Kingdom government will commit to a 35-year subsidy deal at a strike price of £92.50 per MWh – nearly double the current wholesale cost of power.
John Sauven, Greenpeace executive director, said: “Theresa May now has a chance to stop this radioactive white elephant in its tracks”.
“The government has negotiated a really sweet deal for EDF and its Chinese partners but it’s not a good deal for us – people who are paying the bills”. The average age of these stations in 2015 was 30 years, and in February of this year France’s Court of Audit estimated that EDF’s reactor life extension program to 2030, would come to about €100bn, including €25bn in operating costs.
The state-controlled company needs the project to maintain its know-how and prepare for the retirement and renewal of its aging French and British nuclear fleet, according to Levy.
China’s CGN has a 33.5% stake in HPC and will have to fund a third of the £18bn cost.
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Former UK energy secretary Chris Huhne said in an interview with BBC Radio 4 said HPC is “certainly a risk for EDF”, which already is struggling to put its Flamanville project in France online.
