George Osborne has signed off a PS2Billion pound government subsidy to Hinkley Point’s new nuclear power facility. On his visit to China, the Chancellor announced the news. China is supporting the project. According to Osborne, the guarantee will allow Britain to build its first nuclear power plant in more than 20years. Osborne stated that Britain was home to one of the most important civil nuclear power plants in the world. He is determined to lead again. Nuclear power, which is more affordable than other low-carbon technologies and is an essential part of the energy mix along with new power sources like shale gas, is competitive. Today, I’m delighted to give the Hinkley Point guarantee and will be visiting China today to meet with them about their investment in Britain’s nuclear industry. This is another step forward in the golden relationship between Britain & China, the oldest and fastest-growing civil nuclear powers. EDF will receive a guarantee price of 92.5 per megawatt hour of output from Hinkley Point C. Vincent de Rivaz chief executive at EDF Energy called Osborne’s approval for an infrastructure guarantee a “clear signal” of government support for Hinkley. He said, “We are pleased that the government supports the EDF’s industrial participation with its Chinese partners.” It is progress toward a final investment decision for a project that will supply reliable, affordable and low-carbon electricity over the next decades. Artist’s impression Hinkley Point C. Copyright EDF Energy Hinkley Plans have been delayed Due to a variety of issues. EDF Energy, the main developer of this project, has recently stated that further delays could occur. Many analysts have questioned the economics and harshly criticised the plans from the energy sector. The project is expected to cost PS 5billion, more than all of Terminal 2 at Heathrow and Crossrail combined. The UK government remains 100 committed to the completion of the plant, even though it comes with high costs. What is important about the Hinkley Station? Britain needs new investments in its energy infrastructure. The UK’s current infrastructure is in decline and polluting. In the UK, a total 5 26 stations that produce electricity have been closed in the past five years. This accounts for 20% the UK’s current generation capacity. An additional 35% is expected to be shut down. Hinkley Point C will provide electricity to the nation for 7% over six decades, whether it’s needed during summer or winter, and day and night.
