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The UK government has already agreed a deal with EDF to build the long-awaited Hinkley Point C new nuclear plant, and will give the go-ahead once parliament has returned from its summer recess, according to press reports.
The Independent cited Whitehall sources as saying the deal is agreed and will be signed within weeks, and also referenced sources within EDF as saying that contracts will be in place by the autumn.
The £25 billion project, which will receive significant backing from Chinese state-owned companies, will be formally signed by David Cameron in October during a state visit from China’s president Xi Jinping, the report added.
The news coming following Friday’s announcement from EDF of its preferred bidders for £1.3 billion worth of construction contracts which will be awarded subject to a final investment decision.
But the long-awaited deal could still face further opposition from the Austrian government which late last month moved forward with is plans to appeal the state-aid clearance granted to the project by the European Commission in the European Court of Justice. The move is not expected to derail EDF’s plans but further delays are a concern to investors.
RBC Capital said: “Whilst it does not prevent EDF moving forward, it is clearly not helpful, and may yet further delay the final investment decision. Our concerns that a 2023 start date will not be met are heightened.”
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