The UK will allow a majority-owned Chinese nuclear power station on its shores as it moves away from fossil fuels to a low-carbon economy, chancellor George Osborne said yesterday.
Touring a power plant being built in southern China, Mr Osborne said China General Nuclear Power Corporation will sign a letter of intent to partner with France’s EDF in building the proposed Hinkley Point C plant in Somerset. Ed Davey, energy secretary, is expected to announce the commercial terms of the investment contract between EDF and the government within days. A key feature is the “strike price”, the guaranteed price for electricity generated at Hinkley, which will ensure EDF a steady return. It is expected to be twice the current wholesale price.
The energy department said negotiations were ongoing, and an agreement was yet to be finalised.