UK Gov't backs $3.1 Billion for Hinkley Point C Nuclear Project

UK Gov't backs $3.1 Billion for Hinkley Point C Nuclear Project

UK Chancellor of the Exchequer George Osborne said the government approved a £2 billion ($3.1 billion) guarantee for construction of the Hinkley Point C nuclear project.
The guarantee is provided by Infrastructure UK, and is expected to pave the way for a final investment decision from EDF, supported by China General Nuclear Corp. and China National Nuclear Corp., later this year.  As part of the deal, the Chinese companies would receive a significant stake in the plant and the UK government will act as the guarantor.
“Britain was the home to the very first civil nuclear power stations in the world and I am determined that we now lead the way again,” Osborne said. He later added “It is another move forward for the golden relationship between Britain and China - the world’s oldest civil nuclear power and the world’s fastest civil nuclear power.”
EDF announced earlier this month that completion of the project will be delayed and operations will not start in 2023 as planned.
“We will continue to work with EDF to finalise the Hinkley deal, which will power nearly six million homes and create more than 25,000 jobs - providing more financial security for working people and their families as we transition to a low-carbon future,” said UK Energy Secretary Amber Rudd.
The strike price for Hinkley Point C is £89.50/MWh fully indexed to the Consumer Price Index. That price was reached as part of the European Commission’s approval of state aid for the project last October.
Lisa Nandy MP, the UK’s Labour Shadow Energy Secretary, disagreed with the government’s funding decision.
“There is a role for new nuclear power stations to provide us with low-carbon power supplies, but not at any cost,” Nandy said. “It is especially troubling that the Government is agreeing these extra nuclear subsidies at the very time it is cutting support for more affordable clean energy technologies.”
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