UK approves plan to develop Hinkley Point nuclear power station

The UK government has given the go-head for construction of the £18bn Hinkley Point C nuclear power project to France's EDF, but added several conditions.

With France's EDF having agreed to pay for two-thirds of the project, with China General Nuclear Power Group paying the other third as part of proposed supply of further UK power stations, the government it would take a "special share" in all future nuclear new build projects to maintain a measure of control.

"Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the Government has decided to proceed with the first new nuclear power station for a generation," a statement from the Department for Business, Energy & Industrial Strategy said on Thursday.

The agreement adds a condition to enable the government will be able to prevent the sale of EDF’s controlling stake prior to the completion of construction and intervene in the sale of EDF’s stake once Hinkley is operational.

Greg Clark, secretary of state for business, energy and industrial strategy, said: "Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the government’s agreement. Consequently, we have decided to proceed with the first new nuclear power station for a generation."

"Britain needs to upgrade its supplies of energy, and we have always been clear that nuclear is an important part of ensuring our future low-carbon energy security."

As well as questions over national security from the agreement with China, one of the other controversies around Hinkley has been the set price of energy agreed.

The government intends to set a price of £92.50 per megawatt hour of electricity provided by Hinkley Point C for 35 years once it begins generating, with the difference between the strike price and the wholesale price paid for through consumer bills, in the same way as other clean technologies such as offshore wind.