Legal challenge could delay Hinkley Point C

• 9 years ago (2015-01-23)
• Junior Isles

Europe 1061 Nuclear 640

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Austria is to launch a legal challenge to the price for electricity generated by EDF’s planned Hinkley Point C nuclear power station in the UK.

EDF was expected to announce a long-awaited funding agreement for the new station with Chinese partners by the end of March in order to make a Final Investment Decision (FID). Austria’s appeal, however, could potentially delay the FID by up to two years.

Austrian government analysis suggests that European court cases of this nature typically last for one and a half years. However, Andreas Molin, the director of Austria’s environment ministry told the Guardian newspaper: “As this is going to be a more complicated and fundamental case, it will last a little bit longer. Two years could be a rough guess.”

The UK Department for Energy and Climate Change has said the twin reactor station to be built in West Somerset is vital to Britain's future energy mix. The government agreed a ‘strike price’ for electricity generated from the plant at £89.50 per MWh over a 35-year period if Sizewell C (another proposed EDF project) goes ahead; or £92.50 without Sizewell.

The European Union investigated the deal, and approved it in October last year.

Austria, a non-nuclear nation, believes the deal constitutes billions of pounds of illegal state aid. The Guardian newspaper reported that Austria will launch an appeal by April.

Molin said: “There has been a high-level decision by our chancellor and vice chancellor to challenge the EU decision on Hinkley within two months of its publication in the EU's official journal.”

The journal’s publication is expected in the next fortnight.