Following a comprehensive review of the Hinkley Point C project, and a revised agreement with the French power utility EDF, the British Government has approved the contract previously decided between EDF and former Government. The British approval paves the way for EDF for building the project.
The Hinkley Point C project will consist of two 1,630 MW Areva EPR reactors, expected to be commissioned in 2025 at the earliest (construction starting in 2019). Total investment is estimated at £18bn (€21.5bn), with CGNPC investing £6bn (€8.1bn). In September 2015, the UK approved a £2bn (€2.4bn) loan guarantee for the project. EDF will own 66.5% in the project, in partnership with Chinese companies China General Nuclear Power Corporation (CGNPC) and China National Nuclear Corporation (CNNC), which will take over a 33.5% stake in the project.
EDF made its final investment decision (FID) in July 2016 on the £18bn (€21bn) Hinkley Point C project, after having secured additional financial resources to build the project. The group had initially set the FID at the end of 2012 (first operation expected in 2017), but it was delayed several times.
The new agreement includes a provision enabling the Government to prevent the sale of EDF’s controlling stake prior to the completion of construction, without the prior notification and agreement of ministers. In addition, the new legal framework will mean that the Government is able to intervene in the sale of EDF’s stake once Hinkley is operational.
The Government has also modified the legal framework for future foreign investment in Britain’s critical infrastructure, including nuclear energy and apply after Hinkley Point C project. Under the new legal framework the British Government will take a special share in all future nuclear new build projects ; this will ensure that significant stakes cannot be sold without the Government’s knowledge or consent.