Hinkley Point C gets go-ahead – but UK delays

Members of the board at EDF have voted to go ahead with Hinkley Point C, the UK’s first new nuclear plant for two decades – but the UK has delayed the project again.

The board was reported to have voted with ten in favour of the project and seven against. One board member resigned before the meeting. But business and energy secretary Greg Clark said the government would not make a decision to go ahead until the autumn, when it had considered the project.

A spokesman for Chinese company CGN, a co-investor in the project, said: ‘We respect the new government’s need to familiarise itself with a project as important to the UK’s future energy security as Hinkley Point C and we stand ready to help the government in this respect. CGN remains committed to delivering this much needed nuclear capacity with our strategic partners, EDF, and providing the UK with safe, reliable and sustainable energy. We have learnt that the board of EDF has given chairman Levy the authority to proceed with the Financial Investment Decision, subject to approval from the UK government and the Chinese government.’

Josh Hardie, CBI Deputy Director-General, said: “While it is understandable the Government wants to get to grips with the details of the Hinkley contract, it must press ahead to finalise the deal as soon as possible.

“The UK is facing a major investment challenge to ensure a secure, low-carbon and affordable energy supply. It’s crucial that we see clear and timely decisions, and send a definite message that the UK is well and truly open for business.

“In particular, clarity is needed around the next Contracts for Difference auction and the post-2020 Levy Control Framework, to build investor confidence.”

Before news of the delay broke, Tony Ward, head of Power & Utilities at EY, said: “Today’s announcement by EdF’s board is a major vote of confidence in the UK’s energy market, and in the vital role that new nuclear will play in delivering the UK’s low carbon aspirations. The decision to proceed with Hinkley is also a major fillip in terms of long-term highly skilled employment, supply chain opportunities, and economic improvement in the local West Country region.”

John Sauven, Greenpeace executive director said: “This deal was more riven with dissension in the EDF board than anyone expected. It’s unprecedented division and far closer than predicted. Countless experts have warned that for British families this power station will be terrible value for money. This is a bitter pill to swallow for hard up people who have been told that the government is trying to keep bills down while dealing with energy security and lowering carbon emissions.”

Further reading: Is it Brexit for Hinkley Point C?

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