EDF and its Chinese partner China General Nuclear Corporation (CGN) have committed to Hinkley Point C during this week’s landmark China State Visit, confirming the first new nuclear power station in the UK for a generation.
The companies have signed a Strategic Investment Agreement which marks a critical moment for the site in Somerset. EDF has confirmed it will take a 66.5 per cent stake in Hinkley with CGN taking 33.5 per cent, demonstrating a clear commitment from both parties.
The Government and EDF have finalised the detail of the Contract for Difference which offers increased price certainty for the electricity produced from Hinkley Point C. The Funded Decommissioning Programme has been approved and will make sure that the tax payer doesn’t pick up the cost of decommissioning the plant in the future.
Hinkley Point C will provide low carbon electricity to six million homes, twice as many as the whole of London, for around 60 years – and consumers won’t pay a penny until the plant is up and running. It will provide a vital boost for the national and local economy - creating 25,000 jobs, up to 1,000 apprentices and landing UK businesses billions of pounds worth of supply chain contracts.
Prime Minister David Cameron said:
“I’m pleased to announce that today we are signing an historic deal to build the Hinkley nuclear power station, providing reliable, affordable energy for nearly six million homes and creating more than 25,000 jobs, all while working together to build a low-carbon future.”
Energy Secretary Amber Rudd said:
“We are tackling a legacy of under-investment and building energy infrastructure fit for the 21st century as part of our plan to provide the clean, affordable and secure energy that hardworking families and businesses across the country can rely on now and in the future.
“The UK is open for business and this is a good deal for everyone – Hinkley Point C will continue to meet our robust safety regulations and will power nearly six million households with low-carbon energy, creating over 25,000 jobs and more financial security for working people and their families.”
The Government will support new nuclear power stations as we move to a low-carbon future. Hinkley Point C will kick start this and is expected to be followed by more nuclear power stations, including Sizewell in Suffolk and Bradwell in Essex. This will provide essential financial and energy security for generations to come.
EDF Energy CEO Vincent de Rivaz said:
“Hinkley Point C and successive nuclear projects will guarantee the UK the reliable, secure low carbon electricity it needs in the future. Nuclear power will save customers money compared with other energy options and provide a huge boost to British industrial strength, jobs and skills both in Britain and abroad. Today’s announcements are also good news in the fight against climate change.”
Notes to editors
For media queries relating to the Government agreement please call the DECC Media Team on 0300 060 4000. For media queries relating to the Strategic Investment Agreement please contact the EDF Press Office on Tel: +44 (0) 1452 652 233; firstname.lastname@example.org
The UK has one of the strongest levels of nuclear regulation in the world and a track record for delivering safe nuclear energy. Hinkley Point C has met all the robust regulations in place to be a licensed nuclear power station and it must continue to meet the UK’s robust safety regulations.
The Contract for Difference will provide an initial strike price of £92.50/MWh or if Sizewell goes ahead it will be reduced to £89.50/MWh (both 2012 prices), which is competitive with other large energy sources such as gas and offshore wind. The Energy Secretary will take her final decision on the Contract for Difference when EDF and CGN have signed the full investment documentation.
Nuclear power will bring energy and financial benefits to the UK. The Government confirms that it is not continuing the ‘no public subsidy policy’ of the previous administration.
For further information about the UK’s Statement of Cooperation with China on nuclear energy visit https://www.gov.uk/government/publications/statement-of-cooperation-in-the-field-of-civil-nuclear-energy-2015