After an abrupt halt to review Hinkley Point C in July, the government is now ready to push ahead with Europe’s largest energy project, based on a new legal framework on future foreign investment in the plant.
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It finally gave the green light on Thursday, but added provisos to ensure it can intervene to stop any sale of the Hinkley stake held by French power group EDF, and to wield more control over future nuclear projects.
The government said in a statement on Thursday it would impose new security safeguards on future foreign investment in critical infrastructure, and ensure stakes could not be sold without its consent. This will ensure that significant stakes can not be sold without the Government’s knowledge or consent.
‘After reviewing the proposal for Hinkley Point C, we introduced a series of measures to increase the security and we decided that we will continue with the project.’ said the UK Energy Minister.
An official statement said the British government had chose to approve the country’s first nuclear power plant in two decades following a new agreement with EDF, but added that new measures would be taken to enhance security.
“We are now able to move forward and deliver much needed nuclear capacity at Hinkley Point, Sizewell and Bradwell with our strategic partners, EDF, and provide the United Kingdom with safe, reliable and sustainable low-carbon energy”.
Welcoming the decision, China General Nuclear Corporation was quoted by the BBC as saying it was not concerned about the new ownership rules.
When the Hinkley deal was agreed by David Cameron previous year, the agreement concerned only Hinkley Point but said the Government would look favourably on a Chinese-built reactor at Bradwell.
One of Downing Street’s prime concerns was over the security implications of allowing China to take such a large stake in a critical infrastructure project.
A state-backed Chinese firm has a third stake in Hinkley and is pressing to build other new nuclear power stations in the United Kingdom, including Bradwell in Essex.
NUCLEAR POWER: The nuclear industry appeared to have fallen out of favour in Britain, with no new plants opening for 28 years.
Hinkley is expected to provide seven per cent of the UK’s electricity needs over its 60-year lifetime, with the project now slated to begin generating in the mid-2020s.
Inquired by Xinhua about how the changes will affect China’s investment in the Hinkley point, a spokesman for the Department for Business, Energy and Business Strategy said that there would be none.
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That’s according to MP for Morecambe and Lunesdale, David Morris, who said that the recent decision will improve the chances of a third nuclear build in Heysham.
