A variety of United Kingdom organizations, including the CBI and the country’s largest nuclear union, have urged the United Kingdom government to quickly reach a decision on whether to proceed with the planned 3,200 MW Hinkley Point C plant following the surprise decision late Thursday night by the new administration under Prime Minister Theresa May to review the project until the autumn.
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Yes, China General Nuclear Power Corporation (CGN) has taken a 33.5% share, while EDF has a 66.5% stake.
The government signed a 35-year electricity price guarantee contract, known as a “contract for difference”, with EDF in October 2013, under which the utility will receive a top-up fee if power prices are below 92.50 pounds per megawatt-hour (MWh). Last year, Nick Timothy, who worked closely with May in the past and is now her joint chief of staff, raised concerns about Chinese investment in Hinkley.
The contracts to put numerous subsidy structures are not yet signed – that was meant to happen today, as part of the official approval process – so the government could still pull out.
However, just hours after the company gave the green light for the project, the United Kingdom government said it would review the project and make a decision by early fall.
Jean-Bernard Levy, EDF Group chief executive publically declared he was still confident it would go ahead.
The real reason behind the decision may emerge over the next few weeks as the government mulls over the pros and cons of the project.
A number of coal-fired power plants and nuclear reactors have closed in recent years, and the Government has pledged to phase out polluting coal by 2025.
A series of linked deals would have seen CGN also commit to invest in a second EDF-led plant at Sizewell in Suffolk and handed the chance to develop Chinese nuclear reactor technology at Bradwell in Essex.
But following the Government statement, it emerged that no interviews would take place.
EDF “can barely hold itself together”, he said in a statement.
Labour’s shadow energy secretary, Barry Gardiner, said there was a role for nuclear power as part of a low carbon future, but the government’s handling of the situation had been “absolute chaos”.
Claire Jacobson, head of climate, energy and environment policy at the EEF manufacturers’ organisation said the government’s decision was “yet another blow to a decision that has been hindered by many delays and uncertainties”, while Josh Hardie, deputy director-general of the Confederation of British Industry, said “now, more than ever, action is needed on key infrastructure projects which attract investment to the United Kingdom”.
“Although some may think that the strike (agreed) price is high, it isn’t when you compare it with the cost of offshore wind, solar or other forms of renewable energy”, Sue Ion, Fellow of the Royal Academy of Engineering, said. The court decision is expected on September 22.
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“We need to be doing all we can to show that the United Kingdom is open for business”, he said.
