Hinkley Point project can proceed but financial safeguards will be enforced on investors
The UK government has given the green light for a new nuclear power plant at Hinkley Point, but only under conditions aimed at protecting UK infrastructure.
Last month, the government declared it would review the Hinkley Point deal, a joint venture between the China General Nuclear Power Group and EDF Energy, amid spiralling costs and delays.
Although it is unclear why the government started a last minute review, some commentators have suggested the UK prime minister Theresa May is wary of Chinese investment in UK infrastructure projects. The review came only days after EDF approved construction for the power station at Hinkley.
Earlier today, the government announced it will now proceed with the Hinkley Point plans. As part of the agreement in principle, the UK can prevent EDF from selling its stake in the project before construction is complete. The government will also take a ‘special share’ in all future nuclear plant projects.
The move is seen as a way to protect infrastructure plans and ensure foreign investors can’t pull the plug without government knowledge or consent.