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China to take stake in Hinkley Point C nuclear power station
- 9 years ago (2015-10-21)
France’s EDF and China General Nuclear Power Corporation will be the only investors, as the project failed to attract others. The announcement by the Chinese government will, according to the Financial Times , lead to a final investment decision by the end of 2015. The two new reactors under consideration have a completion date of 2025 – an eight-year delay over the initial target.
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The UK government has backed the deal, last month agreeing to provide a £2 billion infrastucture guarantee. UK Chancellor George Osborne believes that the plant – which should deliver 7 per cent of UK electricity when operational – represents good value for money. However, the promised £92.50 ($142) per megawatt hour (MWh) for 35 years is double the average wholesale price consumers could expect to pay today. Consumers will be expected to makeup any shortfall in household bills.
The deal signed between the UK and Chinese governments is also expected to include Chinese involvement in additional nuclear plants in Suffolk’s Sizewell and Bradwell in Essex. China is hoping that these ventures will showcase its designs for further business elsewhere.
However, the new nuclear push by the UK government has been met with intense criticism, over the cost, time to build and general safety concerns. Lord Howell, former energy minister, and Osborne’s father-in-law, said the project was “one of the worst deals ever” for British consumers and industry. Critics like Howell point out that the reactor design for Hinkley C has never been completed successfully, due to huge cost and time overruns at EDF’s projects at Flamanville in France and Olkiluoto in Finland.