The Hinkley Point C nuclear power project is one step closer to approval after the European Union (EU) and the UK government struck a deal.
The EU Competition Commissioner told The Telegraph that he had been looking into the deal since December and decided the project should move forward with some conditions in place which have not been disclosed. The rest of the commissioners are expected to finalize a deal within weeks.
If state aid is approved, EDF will need to finalize deals with China General Nuclear Corp. and China National Nuclear Corp. – which will have a 30 to 40 percent share in the project - before taking a final investment decision, the article said. Under the current deal, EDF and project partners will be guaranteed a price of £92.50 ($151.25), double the current market price of electricity, over a 35-year period.
UK consumers could end up paying £17 billion ($27.8 billion) in subsidies to EDF, which is more than the £16 billion ($26.2 billion) price tag for the plant itself. The incentives triggered an investigation by the European Commission back in December, and prompted commissioners to look into whether the subsidies are in line with EU state aid rules.
EDF and the UK said the subsidies would be necessary in order to build the plant.
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