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Hinkley Point C nuclear power station gets government go-ahead Hinkley Point C nuclear power station gets government go-ahead
(35 minutes later)
Theresa May has given the £18bn Hinkley Point C nuclear power station the go-ahead with “significant new safeguards” to make sure Chinese involvement does not threaten national security.Theresa May has given the £18bn Hinkley Point C nuclear power station the go-ahead with “significant new safeguards” to make sure Chinese involvement does not threaten national security.
The controversial scheme in Somerset was approved six weeks after May unexpectedly placed the project under review, causing tensions with China.The controversial scheme in Somerset was approved six weeks after May unexpectedly placed the project under review, causing tensions with China.
Under the deal, the major plant is to be built by EDF, the French state company, with £6bn investment from China, without any changes to the original price tag. Under the deal the major plant is to be built by EDF, the French state company, with £6bn investment from China, without any changes to the original price tag.
The government is keeping a guaranteed price of £92.50 to EDF for every megawatt hour of electricity generated, despite concerns that is far higher than the market rate. Both EDF and China General Nuclear said they were delighted by the approval, which will let them proceed with Hinkley and their wider plans for nuclear construction in the UK in future.
Greg Clark, the business secretary, is introducing some new security restrictions, including a ban on EDF being able to sell its interest without UK government approval. Following the reviews, the government is keeping a guaranteed price of £92.50 to EDF for every megawatt hour of electricity generated, despite concerns that is far higher than the market rate.
He is also bringing in a new national security test for all foreign investment in critical infrastructure, which could hamper China’s goal of developing its own plant at Bradwell in Essex and making a more active investment in Sizewell B in Suffolk. Greg Clark, the business secretary, is introducing new security restrictions, including a ban on EDF being able to sell its interest without UK government approval.
Beijing has not yet confirmed that it wants to proceed with the investment in Hinkley since the UK government implied there were security concerns about its involvement in the sector. He is also bringing in a new national security test for all foreign investment in critical infrastructure, which could affect China’s goal of developing its own plant at Bradwell in Essex and making a more active investment in Sizewell B in Suffolk.
Chinese officials have previously reacted by giving a series of veiled warnings that a decision by Britain to halt their investment in UK nuclear would be seen as a snub and would put at risk a supposed golden era of relations between the two countries. However, China General Nuclear said it believed it would be able to proceed with involvement in Sizewell and Bradwell as well. “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 UK with safe, reliable and sustainable low-carbon energy,” it said.
“CGN and EDF have worked together in close cooperation for decades and this has laid a solid foundation for these three new nuclear projects. CGN looks forward to leveraging its 30 years’ experience in nuclear construction and operation and playing an important role in meeting the UK’s future energy needs.”
The Chinese are keen to proceed with Bradwell in particular because it will be their own design built under the UK’s stringent safety regulations, allowing the company to use it as a showcase to the rest of the world.
Chinese officials have previously given a series of veiled warnings that a decision by Britain to halt their investment in UK nuclear would be seen as a snub and would put at risk a supposed golden era of relations between the two countries.
The decision means Hinkley will be the first new nuclear reactor built in Britain in two decades.The decision means Hinkley will be the first new nuclear reactor built in Britain in two decades.
Ahead of an announcement in the House of Commons, Clark said: “Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the government’s agreement. Consequently, we have decided to proceed with the first new nuclear power station for a generation. Before an announcement in the House of Commons, Clark said: “Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the government’s agreement. Consequently, we have decided to proceed with the first new nuclear power station for a generation.
“Britain needs to upgrade its supplies of energy, and we have always been clear that nuclear is an important part of ensuring our future low-carbon energy security.”“Britain needs to upgrade its supplies of energy, and we have always been clear that nuclear is an important part of ensuring our future low-carbon energy security.”
As part of the decision, there will be wider changes 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.As part of the decision, there will be wider changes 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.
This marks a departure from the more laissez-faire approach of David Cameron’s administration.This marks a departure from the more laissez-faire approach of David Cameron’s administration.
A government statement said: “Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the government has decided to proceed with the first new nuclear power station for a generation. However, ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley.”A government statement said: “Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the government has decided to proceed with the first new nuclear power station for a generation. However, ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley.”
It said the new legal framework for future foreign investment in critical infrastructure would mean the government would “take a special share in all future nuclear new build projects” so “significant stakes cannot be sold without the government’s knowledge or consent”.It said the new legal framework for future foreign investment in critical infrastructure would mean the government would “take a special share in all future nuclear new build projects” so “significant stakes cannot be sold without the government’s knowledge or consent”.
“The changes mean that, while the UK will remain one of the most open economies in the world, the public can be confident that foreign direct investment works in the country’s best interests,” it said.“The changes mean that, while the UK will remain one of the most open economies in the world, the public can be confident that foreign direct investment works in the country’s best interests,” it said.
French prime minister, Manuel Valls, tweeted that it was excellent news that the project was going ahead and that it would be a boost for jobs in France. The economy minister Michel Sapin said it was an “undeniable success for French industry” and would be “a big contribution to supporting employment in France”. The French prime minister, Manuel Valls, tweeted that it was excellent news that the project was going ahead and that it would be a boost for jobs in France. The economy minister, Michel Sapin, said it was an “undeniable success for French industry” and would be “a big contribution to supporting employment in France”.
Jean-Bernard Lévy, the chief executive of EDF Group, said: “The decision of the British government to approve the construction of Hinkley Point C marks the relaunch of nuclear in Europe.”
Accord sur le projet Hinkley Point : une excellente nouvelle pour la filière nucléaire française et pour l'emploi dans l'Hexagone. MVAccord sur le projet Hinkley Point : une excellente nouvelle pour la filière nucléaire française et pour l'emploi dans l'Hexagone. MV
But the news was met with dismay by environmental campaigners, who had been given hope it would be cancelled when May placed it under review.But the news was met with dismay by environmental campaigners, who had been given hope it would be cancelled when May placed it under review.
John Sauven, Greenpeace’s executive director, said the potential political embarrassment of scrapping the deal must have proved too great.John Sauven, Greenpeace’s executive director, said the potential political embarrassment of scrapping the deal must have proved too great.
But he added: “This decision is unlikely to be the grand finale to this summer’s political soap opera. There are still huge outstanding financial, legal and technical obstacles that can’t be brushed under the carpet. There might be months or even years of wrangling over these issues. That’s why the government should start supporting renewable power that can come online quickly for a competitive price.”But he added: “This decision is unlikely to be the grand finale to this summer’s political soap opera. There are still huge outstanding financial, legal and technical obstacles that can’t be brushed under the carpet. There might be months or even years of wrangling over these issues. That’s why the government should start supporting renewable power that can come online quickly for a competitive price.”
Caroline Lucas, co-leader of the Green Party, said it was absurd and disappointing that the deal was to proceed when the government is reducing support for cheaper, safer and more reliable renewable alternatives. Caroline Lucas, co-leader of the Green party, said it was absurd and disappointing that the deal was to proceed when the government was reducing support for cheaper, safer and more reliable renewable alternatives.
“Instead of investing in this eye-wateringly expensive white elephant, the government should be doing all it can to support offshore wind, energy efficiency and innovative new technologies, such as energy storage,” she said.“Instead of investing in this eye-wateringly expensive white elephant, the government should be doing all it can to support offshore wind, energy efficiency and innovative new technologies, such as energy storage,” she said.
However, business groups, engineers and trade unions welcomed the decision to proceed, saying it would create jobs and ensure a secure supply of energy.However, business groups, engineers and trade unions welcomed the decision to proceed, saying it would create jobs and ensure a secure supply of energy.
Claire Jakobsson, of the EEF manufacturers’ organisation, it was a “relief to see Hinkley proceeding after months of delays and uncertainty” but called for significant reductions in the price of electricity generated by future nuclear projects. Claire Jakobsson, of the EEF manufacturers’ organisation, it was a “relief to see Hinkley proceeding after months of delays and uncertainty”, but called for significant reductions in the price of electricity generated by future nuclear projects.
Brian Rye, acting general secretary of UCATT, the construction union, said: “The go-ahead was vital for the construction industry which desperately needed the confirmation of such a major project following a slowdown in the industry caused by the Brexit vote. It is also good news for the overall economy as it helps to guarantee the stability of our future energy supply.” Brian Rye, acting general secretary of UCATT, the construction union, said: “The go-ahead was vital for the construction industry, which desperately needed the confirmation of such a major project following a slowdown in the industry caused by the Brexit vote. It is also good news for the overall economy as it helps to guarantee the stability of our future energy supply.”
French secretary of state for industry Christophe Sirugue told France Info the Hinkley decision was good news because it validated French industrial strategy to invest in nuclear. He said it would create 4,500 jobs in France. Questions remain over the difficult financial position of the French state-owned power company EDF which will assume up-front costs, which some unions in France argue could jeopardise the firm’s survival. The French secretary of state for industry, Christophe Sirugue, told France Info the Hinkley decision was good news because it validated French industrial strategy to invest in nuclear. He said it would create 4,500 jobs in France. Questions remain over the difficult financial position of the French state-owned power company EDF, which will assume up-front costs, which some unions in France argue could jeopardise the firm’s survival.
Sirugue said the state had “taken serious account” of the concerns and would be reorganising and helping out the firm.He added that it was “extremely important” that the Hinkley project went ahead in terms of France “demonstrating our industrial savoir-faire” to the international market. Sirugue said the state had “taken serious account” of the concerns and would be reorganising and helping out the firm. He added that it was “extremely important” that the Hinkley project went ahead in terms of France “demonstrating our industrial savoir-faire” to the international market.