More reaction to Hinkley approval

The government has given its final approval to plans to build the first new nuclear plant in Britain in a generation at Hinkley Point C in Somerset.

After unexpectedly launching a review into the deal in July, the government has decided to press on but with some new strings attached.

Under the revised agreement, EDF will be unable sell its controlling stake in the £18 billion project prior to the completion of construction, without the consent of ministers.

Speaking in parliament today business and energy secretary Greg Clark said existing laws and a “new legal framework” would prevent the French supplier from doing so once it is up and running. The government will take a ‘golden share’ in all future nuclear projects so they cannot be sold without its say so.

Clark also said that EDF had confirmed to him that they will not take up the £2 billion loan guarantee offered by the government, meaning “the taxpayer is fully insulated from the cost of construction”.

Both EDF and China General Nuclear Power Corporation (CGN) – which has taken on a 33.5 per cent stake in the plant – have agreed to the revised terms. The latter said in a statement it was “delighted” by today’s decision.

You can see the initial reaction to the decision here. Here’s how others have responded in the meantime:

Barry Gardiner, shadow energy secretary for Labour

 “This is an important project and it is vital that Hinkley Point C goes ahead because of the role it will play as part of our energy mix, the 25,000 high-skilled jobs it will create and the £18bn investment that the UK desperately needs.

“Labour have said repeatedly that the government negotiated too high a price for the power that Hinkley C will generate. As the government undertook to review all components of the deal this summer, it is extraordinary that they have not reviewed the price per unit of power, and saddles consumers with a bill that has already increased from £6bn to £30bn.

“What we desperately need from the Government is to get on with the job in hand which is to provide a well thought out strategy to deal with the future energy challenges our country will face.”

Caroline Lucas, co-leader of the Green Party

“It is truly absurd that the government plans to plough billions of taxpayers’ money into this vastly overpriced project, and has done so without informing parliament of the true costs. It is even more absurd that they are doing so at the same time as reducing support for cheaper, safer and more reliable alternatives.

“Instead of investing in this eye-wateringly expensive white-elephant, the government should be doing all it can to support offshore wind, energy efficiency and innovative new technologies, such as energy storage.”

Tom Greatrex, chief executive of the Nuclear Industry Association

“The prime minister’s decision to agree to the Hinkley Point C contract is welcome news for the UK’s nuclear supply chain who are ready to deliver this important national infrastructure project, providing reliable, constant electricity as part of a balanced mix for the future.”

 “The benefits of nuclear power are clear and the government, trade unions, industry and energy experts are right that it is an important part of the UK’s energy mix. Hinkley will be the first to get shovels in the ground, but we need to secure our energy future and bring more low carbon power to the grid.”

Duncan Hawthorne, chief executive of Horizon Nuclear Power

“New nuclear is vital for the UK’s future electricity mix and so today’s announcement on Hinkley Point C is good news for the country’s security of supply and clean energy needs. The emphasis must now be on delivering the government’s vision of a wider nuclear programme in the UK and we remain focused on continuing to make strong progress with our lead Wylfa Newydd project.

This includes clearing our tried and tested reactor technology for deployment in the UK, consulting across North Wales on our plans and the huge economic opportunities they will deliver, and working with government on a deal that delivers at a fair and acceptable price for all.”

Tom Samson, chief executive for NuGen

 “The news is positive for the UK nuclear new build market, where developers such as NuGen are investing heavily in delivering the next generation of low carbon power for the UK.

“It demonstrates the viability of new nuclear investment in the UK, based on the government’s Electricity Market Reform programme and is welcome evidence of the UK government’s commitment to new nuclear as an essential part of the UK energy mix.
 
“Hinkley Point C is the start of the nuclear new build renaissance in the UK, of which NuGen are an integral part, and today’s decision is an essential step towards strengthening the UK security of supply. New nuclear will also help the UK to meet its domestic and international commitments to a low carbon economy.” 

Jenifer Baxter, head of energy and environment at the Institution of Mechanical Engineers

“This announcement is welcome and great news for the nuclear sector, however, it is important to note that this is not the end but merely a small step at the start of securing our low carbon energy requirements for the future. 

“As outlined in our policy statement earlier on this year, the UK is facing an electricity supply gap by 2025, so the government must ensure that a plan is put in place to meet future carbon targets as well as developing skills and growth for the sector. 

“The development of Hinkley Point C provides an opportunity for the government, in collaboration with the National Grid and groups like the Institution of Mechanical Engineers and the Energy Systems Catapult to fully understand the likely future capacity gap and identify generation needs, types and emerging technologies that can potentially bridge this gap.”

Nina Skorupska, chief executive of the Renewable Energy Association 

“Renewables such as solar, onshore wind and biomass are already cheaper than nuclear, are quicker to deploy, and have none of the construction or economic risk. From the time Hinkley Point C was proposed to now we’ve seen extraordinary advancements in technology, falling costs, and high deployment rates.

“Since the project’s initial consultation in 2008 the UK has gone from producing less than 6 percent of its electricity from renewables to over 25 percent in the first quarter of 2016. Our analysis shows that for nearly every renewable technology the equivalent amount of capacity could be procured at much lower cost using renewables.

“While we welcome a diverse low-carbon energy mix, we urge the government to consider the costs and support other industries in which the UK could be a global leader, such as energy storage.”

Tom Burke, chairman of E3G

 “It is a 20th Century solution to 21st Century problems. Bigger is no longer better. There are faster, cheaper, cleaner and smarter ways to deliver affordable, secure, low carbon electricity to Britain’s consumers.

“Nothing about this deal is good for Britain’s hardworking families. They will pay the bill for decades but the jobs will go abroad. It is bad for consumers, bad for the climate and bad for the country.

“The prime minister is missing a real opportunity to set Britain on course to a more productive and secure future. Instead she has committed us to an expensive and anachronistic energy policy that will leave Britain further behind in a rapidly changing world.”

Dave Cockshott, chief commercial officer at Inenco

“The government’s decision to proceed with a new nuclear site at Hinckley point is a positive step forward for both UK PLC and the UK’s long-term energy strategy. However, whilst the prolonged period of uncertainty has finally come to a close, it is important to point out that this new plant is not going to solve the UK’s energy problems quickly or on its own.

“Hinkley Point will only produce around 7% of the UK’s electricity and, assuming it is built on time, the plant will not be ready until the mid-2020s. This means that we need to act now on the UK’s short-term security of supply issues. Nuclear energy is just one piece of the puzzle and it is critical that the UK adopts an energy strategy that utilises a mix of supply sources; from renewables to fossil-fired generation.”

John Sauven, executive director of Greenpeace

 “This decision is unlikely to be the grand finale to this summer’s political soap opera. There are still huge outstanding financial, legal and technical obstacles that can’t be brushed under the carpet. There might be months or even years of wrangling over these issues. That’s why the government should start supporting renewable power that can come online quickly for a competitive price.

“Today’s decision hasn’t been made on the cold, hard facts that show Hinkley will not deliver competitively priced, low carbon energy any time soon. Instead it seems that Hinkley became too big to fail. The potential for political embarrassment for the new prime Minister was too high.”

Agenta Rising, director general of the World Nuclear Association

“Today’s announcement is good news for nuclear energy in the UK and Europe. The Hinkley Point C project demonstrates the value of international cooperation in new nuclear build, as well as the benefits of jobs and investment that such projects bring to local communities.”

“Hinkley Point C will generate 7% of the UK’s electricity, avoid 9 million tonnes of carbon dioxide emissions each year and create over 25,000 new employment opportunities. It is the first of a series of new build projects that will bring more than 15 GW of nuclear generation capacity to the UK.”

Simon Stuttaford, partner and head of nuclear at DWF

“It’s a relief that the Government has finally committed to Hinkley Point C.  Energy infrastructure in the UK is in urgent need of renewal and it is estimated that up to 60 GW of new generating capacity will be required by the mid-2020s.

“The UK needs new nuclear, and the political stability served by today’s decision is a critical ingredient for nuclear new build to flourish. It will be celebrated by the industry as a whole, and particularly by those working on the UK’s other two new build nuclear projects, led by NuGen and Horizon.”

Nigel Blackaby, conference director for Power-Gen Europe

“Hinkley Point has been the poster child for UK’s so-called nuclear renaissance, which as a policy, has been stuttering for years, due to the prevarication over whether or not to proceed.  While only time will tell if the strike price is a good deal for the British taxpayer, the fact that we now have a firm position from the UK government sends a strong signal to both the energy industry and those sectors reliant on a resilient power infrastructure.”

“It is disappointing that the decision to finally proceed with Hinckley Point has been delayed for so long so it is now unlikely that it will supply the grid before 2026. In the meantime, a predicted power deficit in the UK may be good news for developers of gas-fired power plants that will be best placed to quickly fill the gap left by retiring nuclear and coal fired plants.”

Hasat Murat Mercan, chair of the organising committee for the 23rd World Energy Congress

“The UK government’s decision to go ahead with Hinkley Point C is essential but is at the same time just one piece of the puzzle for the energy sector, which is in the midst of a ‘grand transition’. The way energy security is approached has to change radically.  The expansion of unconventional fuels is vital to ensure energy security whilst working towards a low carbon economy.” 

“For nuclear energy to increase its share of the generation market, simply expanding infrastructure is not enough. There needs to be the political will to foster innovation and a sympathetic policy and investment environment for this to succeed.”