Chinese Firms to Invest in UK’s Nuclear Power Plant Project

Chancellor George Osborne has announced that the UK will provide £2 billion for a nuclear power station at Hinkley Point, a project in which Chinese companies will partly invest.

As mentioned in BBC EDF, the French energy company, had proposed this project, which was delayed for several reasons. But now that an investment decision has been made, the project can finally be started. Although EDF is happy about the news, it is yet to announce that it will start working on the project.

Osborne also said that the latest deal signed between the two countries will enable them to collaborate better on nuclear plant projects.

Early in September, EDF stated that the nuclear plant project at Hinkley Point in Somerset will be delayed. The aim of the project was to construct a plant that could start generating power by 2013. In February, the company announced that it has not yet decided whether it should invest in the firm.

The project, which is worth £24.5 billion, will be the first nuclear plant project undertaken by the UK government after 20 years. Once completed, it will be able to generate power for 60 years. Osborne said:

“Britain was the home to the very first civil nuclear power stations in the world and am determined that we now lead the way again. Nuclear power is cost-competitive with other low carbon technology and is a crucial part of our energy mix, along with new sources of power such as shale gas.”

Osborne said that Chinese firms will get a huge share of the project and the government of UK will provide guarantee for the investment under the Infrastructure UK Scheme, which supplies funds for projects that fail to capture the interest of private investors.

EDF found it very difficult to find co-investors for the project, which will satisfy 7% of the country’s energy requirements after 2023.

The project will continue to remain under the control of EDF, which will supply electricity from the plant at Hinkley Point for 35 years at a minimum rate of £89.50 per MW/hour.

Dr. Doug Parr, the chief scientist at Greepeace, feels that Osborne is

“signing up the country for the ultimate rip-off deal.” He said: “Instead of locking two generations of UK consumers into paying billions to foreign state-owned firms, Osborne should invest in the flexible, smart, and truly clean energy system that can power a 21st century Britain without leaving a pile of radioactive waste as legacy.”