Osborne announces £2bn Hinkley deal
21 Sep 2015
Chancellor George Osborne has today announced a £2 billion guarantee with China for the development of Hinkley Point C nuclear power station in Somerset.
According to Osborne, who is currently on a tour of China, the deal will pave the way for a final investment decision by French energy utility EDF.
“The Chancellor’s approval of the infrastructure guarantee is a clear sign of the government’s commitment to Hinkley Point C,” said Vincent de Rivaz, chief executive of EDF Energy.
Nuclear power is cost competitive with other low carbon technology
Chancellor George Osborne
Hinkley Point C is expected to generate 3.2GW of power via two Areva 1,630MW European Pressurised Reactors (EPRs), which translates to roughly 7% of the country’s energy needs.
“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,” Osborne said.
“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,” he added.
Last month, EDF Energy announced a number of new preferred bidders to undertake vital infrastructure work at the proposed nuclear site.
Infrastructure firm Balfour Beatty were the big winners, being appointed as the preferred bidder for the power station’s £460 million electrical package.
A number of pumps manufacturers were also selected to supply pumps that will be used to help control the nuclear plant’s feedwater and cooling water systems.
Hinkley Point C is set to be the first new nuclear build in Britain for 20 years and will run for 35 years at an agreed strike price of £89.50/MWh.
However, that figure will rise to £92.50/MWh if the final investment decision is not taken on Sizewell C nuclear power station in Suffolk.
