Just six weeks after Theresa May unexpectedly placed the project under review, the £18bn Hinkley Point C nuclear power station has been given the go ahead with "significant new safeguards" to make sure Chinese involvement does not threaten National Security.
Under the deal the new plant is to be built by EDF Energy with a £6bn investment from China. Both EDF and China have said they were delighted by the approval, which will let them proceed with Hinkley and their wide plans for nuclear construction in the UK in the future.
Following the reviews, the Government is keeping a guaranteed price of £92.50 to EDF for every megawatt hour of electricity generated, despite concerns that it is far higher than the market rate.
The decision means that Hinkley will be the first new nuclear reactor built in Britain in two decades. However, as part of the decision there will be wider changes to the Government's approach to the ownership and control of critical infrastructure to ensure that the full implications of foreign ownership are scrutinised for the purposes of National Security.
A Government statement said: "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. However, ministers will impose a new legal framework for future foreign investment in Britain's critical infrastructure, which will include nuclear energy and apply after Hinkley."
Additionally, it said the new legal framework for future foreign investment in critical infrastructure would mean the Government would "take a special share in all future nuclear new build projects" so "significant stakes cannot be sold without the Government’s knowledge or consent." It also added that "the changes mean that, while the UK will remain one of the most open economies in the world, the public can be confident that foreign direct investment works in the country’s best interests."
The news was met with dismay by environmental campaigners, who had been given hope it would be cancelled when Theresa May placed it under review.
John Sauven, Greenpeace's executive director, said the potential political embarrassment of scrapping the deal must have proved too great. But he added that: "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."
Caroline Lucas, co-leader of the Green party, added: "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."
