China Buying Into UK Nuclear Plants

UK Prime Minister David Cameron and visiting Chinese President Xi Jinping confirmed a controversial nuke deal under which China General Nuclear Power Corporation (CGN) will invest GBP 6 billion ($9 billion) in EDF’s Hinkley Point project in Somerset, Britain’s first new nuclear plant in a generation.

Xi met Cameron, on the second day of his UK state visit. The agreement also set up a wider UK partnership to develop new nuclear power stations at Sizewell and Bradwell. Hinkley is supposed to start generating in 2025.

In September, Chancellor George Osborne visited China and secured the deal under which Beijing will invest in Hinkley Point. The chairman of environmental think tank E3G Tom Burke claimed in a personal film that it would be "a very bad deal for Britain” for both the environment and taxpayers.

The Hinkley Point project has being criticised over its cost and the delays to investment decisions and the timetable for building.

The government insists that 25,000 jobs will be created and enough energy to power six million homes.

The deal is a boost for French nuclear plant operator EDF and reactor maker Areva that are under pressure to prove their reactors can be built on time and on budget after other projects in Europe were billions of euros over budget and years behind schedule. "This deal confirms the leadership of EDF and the way we are able to attract investors as demanding as the Chinese investors,” Vincent de Rivaz, head of EDF’s British unit EDF Energy told reporters.

The Hinkley Point project will be the first new nuclear plant built in the European Union since Japan’s Fukushima 2011 reactor meltdown.

World Nuclear Association Director General Agneta Rising said the Hinkley Point C will be the first of a series of projects bringing the world’s best new nuclear technology to the UK to cut carbon emissions, provide reliable electricity and secure affordable electricity for the future.

"Globally, it is clear we need to accelerate our deployment of low carbon generation. Nuclear power provides the stable foundation to support other climate-friendly technologies,” Rising said.

The mechanisms that are enabling Hinkley Point C and other low carbon projects in the UK are one way of addressing weakness in deregulated markets, the World Nuclear Association said, adding that currently deregulated markets fail to correctly value longer-term benefits such as carbon avoidance, price certainty and reliability of supply.

"New nuclear construction around the world is at the highest level for 25 years, but we need to see more countries learning from the UK’s example to support nuclear energy among a mix of generation technologies that are fit for the future. Governments must act to ensure that markets support new investment in technologies such as nuclear, the UK is showing one way this can be achieved,” Rising said.

In addition to avoiding up to nine million tonnes of carbon dioxide emission each year the Hinkley Point C project will also support tens of thousands of employment opportunities. Rising said, "Hinkley Point C’s international partners and those new nuclear projects planned to follow it will bring investment and jobs for decades to come”.

However, there is wide opposition to EDF’s proposed new reactors at Hinkley Point, which could spark "major embarrassment” for the government.

A Populus online poll of 2,077 Britons for Greenpeace found just 29% backed the plans. "No wonder the Hinkley project enjoys little public support,” Greenpeace UK chief scientist Doug Parr said. "Consumers are hearing from ministers that keeping bills down is their top priority, yet George Osborne is about to plough billions into the bottomless pit of ever more expensive nuclear power whilst pulling the plug on clean energy sources that are getting cheaper every year.”