Hinkley C deal the “starter gun” for new nuclear fleet

The deal for a new nuclear power station at Hinkley Point C that has been struck between EDF and the government is the “starter gun” for a fleet of new nuclear power stations in the UK, according to analysts.

The strike price of £92.50/MWh for the Hinkley Point C plant – which will fall to £89.50/MWh if EDF develops a sister plant at Sizewell – is seen as a landmark deal by the industry, and one that will lead to further new nuclear developments in the UK.

John Cridland, director general at the CBI, said: “New nuclear plants must be a fundamental feature of our future energy landscape, and Hinkley Point C is the starter gun to securing the investment we need.”

Tony Ward, head of power and utilities at EY, supported this view, saying the deal was “one of the most significant enablers” for new nuclear in the UK, not only for EDF at Hinkley Point, but also for the Horizon and NuGen projects.

He added: “Whilst not the final piece of the jigsaw, this is undoubtedly one of the most significant.”

The Hinkley Point C agreement should act as a “catalyst for encouraging other consortia” according to Dr Tim Fox, head of energy and environment at the Institute of Mechanical Engineers.

He added that “today’s announcement will hopefully mark the start of a nuclear power revival in the UK”.

However, not all of the UK is set to benefit from a new nuclear revolution on the back of the Hinkley Point C deal, according to the GMB trade union.

They said that “due to the Scottish government’s lack of strategy and vision”, Scotland “runs the risk of missing out”.

Jim Moohan, GMB Scotland senior organiser, said: “This go ahead at Hinkley Point C should serve as a wake up call on the serious risk of Scotland missing out on the next generation of new nuclear power stations.”

He added that there are no plans to replace the Hunterston B and Torness reactors, and that new nuclear is needed because “the renewables factor will not sustain our energy requirements”.