UK/France: Unprecedented state funding signed for nuclear plant project

The UK has signed an unprecedented agreement with France-based EDF to construct the first nuclear plant within Europe since the Fukushima plant crisis, making the UK the first EU nation to supply state guarantees for a nuclear project, say reports..

The project marks the UK as the first nation to request approval by the European Commission for a “Contracts for Difference” scheme, which has the UK paying electricity generators above-market prices.

The project, known as the Hinkley Point C project, is worth $26 billion and is slated to begin producing nuclear power in 2023.

The Commission decided against including nuclear power within its revisions to state aid law, but will still need regulatory approval under state aid rules.

The plant will receive a guaranteed energy strike price of $150 per megawatt-hour for 25 years, say reports.

The plant, to be built by an EDF-led consortium, will provide about 7 percent of electricity in the UK. The EDF consortium will be co-owned by longtime Chinese partners, China General Nuclear Corporation and China National Nuclear Corporation, which will take a 30-to-40 percent stake in the consortium. France-based nuclear firm Areva will own 10 percent, say reports.

Full content: Reuters

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