Despite recent rumours that the UK government has been looking for an exit from the controversial Hinkley Point C 3,200 MW nuclear power project, the newly-created Department for Business, Energy and Industrial Strategy (BEIS) has now given it the green light.
After “a comprehensive review” which resulted in revisions to its initial agreement with France’s EDF, which will build the power plant, BEIS said the 18 GGBP (21 GEUR) project would proceed. Two-thirds of the project is to be funded by EDF, with China contributing 6 GGBP.
The guaranteed power price of 92.50 GBP/MWh (0.11 EUR/kWh) has not been changed, although concerns have been raised because it exceeds the market rate. A study commissioned by the Financial Times found that EDF and China General Nuclear Corporation (CGN) stand to make as much as 100 billion pounds in revenues from the project over 35 years. [pen]
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