While on a five day tour of China, the Chancellor George Osborne announced an important milestone on nuclear new build. Mr Osborne insisted that new nuclear power stations are essential to make sure the lights stay on as he gave the green light to the initial government guarantee for the first such plant in Britain for 20 years.
He announced the new government guarantee, provided by Infrastructure UK, for a new nuclear power station planned for Hinkley Point C in Somerset. The initial deal is set to be worth around £2 billion and will pave the way for a final investment decision by energy company EDF, supported by China General Nuclear Corporation and China National Nuclear Corporation, later this year, and with further amounts potentially available in the longer-term.
The construction and operation of Hinkley Point C will create thousands of jobs in Somerset and more widely in the nuclear industry across the UK, as well as boosting Britain’s energy security. It is also expected to open the door to unprecedented collaboration in the UK and China on the construction of new nuclear power stations.
During the next ten years, Britain is expected to need to replace around quarter of its capacity due to ageing nuclear and coal power plants retiring, which the new Hinkley Point power station will help achieve.
Mr Osborne said: “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. 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.”
“So I am delighted to announce this guarantee for Hinkley Point today and to be in China to discuss their investments in Britain’s nuclear industry. 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 growing civil nuclear power.”
The timetable for Sizewell C is dependent on the progress being made at Hinkley Point C. The Chancellor’s announcement also opens up opportunities for potential Chinese collaboration in the Sizewell C design and build.
Commenting on the Chancellor’s announcement, Caroline Williams, Chief Executive of Norfolk Chamber said:
“Norfolk Chamber welcomes the announcement by the Chancellor and hope that this will aid EDF and its partners to reach a final investment decision on Hinkley Point C. Not only will a final decision on Hinkley bring the development of Sizewell C a step closer, but it will help ensure the security of the UK’s energy supply going forwards.”
