Theresa May has been accused of backing down on security concerns about Chinese involvement in nuclear power after she gave the go-ahead to the £18-billion Hinkley Point C plant following a six-week review, reports The Guardian.
The government insisted the new plant in Somerset was only being approved with “significant new safeguards” to make sure China and other foreign investors could not own stakes in British nuclear plants without UK government approval.
However, Labour and environmental groups said the new security measures were merely “window dressing” and “hot air” that changed very little about the project, as the price remains the same and the new security powers already exist in law.
Under the proposals, EDF, the French firm building the plant with a £6-billion investment from a Chinese state nuclear firm, will not be able to sell on its ownership without permission. For future projects, the UK government will own a “special share” that means it will have a veto over owners if there are national security concerns.
In a sign the new requirements do not appear to be overly stringent, both EDF and China General Nuclear said they were delighted by the approval, which they claimed will let them proceed with Hinkley and their wider plans for nuclear construction in the UK in future.
The Chinese are keen to proceed with a new plant at Bradwell in Essex in particular because it will be their own design built under the UK’s tough safety regulations, allowing the company to use it as a showcase to the rest of the world.
“We are now able to move forward and deliver much-needed nuclear capacity at Hinkley Point, Sizewell and Bradwell with our strategic partners, EDF, and provide the UK with safe, reliable and sustainable low-carbon energy,” CGN said.
“CGN and EDF have worked together in close cooperation for decades and this has laid a solid foundation for these three new nuclear projects. CGN looks forward to leveraging its 30 years’ experience in nuclear construction and operation and playing an important role in meeting the UK’s future energy needs.”
The shadow energy secretary, Barry Gardiner, said the government has “backed down with a whimper” over its security concerns about Chinese involvement, saying it had announced “new powers they already possess”.
He told Greg Clark, the business secretary: “They have claimed they introduced significant new safeguards into this package. The secretary of state already has such powers. Will the secretary of state acknowledge that he can prevent the sale of any element of critical infrastructure?”
John Sauven, the Greenpeace executive director, also said the government’s review “appears to have been a lot of hot air”.
“The prime minister has baulked at the political embarrassment of irritating the French and offending the Chinese. Consequently, even if EDF manages to get the technology to work, the UK will pay the price by saddling themselves until 2060 with an out of date, flawed and expensive technology,” he said.
Clark, the business and energy secretary, said the new security restrictions were an improvement, claiming EDF would have been at liberty to sell its stake on without the revised contract.
His Department for Business, Energy and Industrial Strategy confirmed that this was the only new security requirement for Hinkley to proceed.
The controversial scheme in Somerset was approved six weeks after May unexpectedly placed the project under review, causing tensions with Beijing.
Following the review, the government is keeping a guaranteed price of £92.50 to EDF for every megawatt hour of electricity generated, despite concerns that is far higher than the market rate.