China invests in Brirtain’s Nuclear power plant

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hinkley nuclear plant UKHong Kong : UK has planned a big ticket entry for China in nuclear power sector via investments. Chancellor George Osborne announced that UK has committed a guarantee a £2bn deal under which China will invest in the Hinkley Point nuclear power station. Osborne is on his visit to China and stated that this big ticket deal would pave way for a final investment route on this Hinkley project, which had been facing delays due to French Energy giant EDF and its role in the project.

Earlier this month EDF had expressed its fears about a delay in scedule of execution concerning Hinkley project, which was intended to allow the plant to generate power by 2023. The french company went to the extend of reconsidering its overall investment scenario and announced in February that it had pushed back its decision on whether to invest in the plant.

Osborne said – this China-UK deal would also enable greater collaboration between them on construction of nuclear plants. Britain was home to the very first civil nuclear power stations in the world and I am determined that we now lead the way again. Nuclear power is cost-competitive with other low carbon technology and is a crucial part of our energy mix, along with new sources of power such as shale gas, he added.

The £24.5bn power station would be Britain’s first new nuclear power plant for 20 years and is expected to provide power for about 60 years. EDF, which will continue to control the venture, agreed to provide electricity from Hinkley at a guaranteed minimum price of £89.50 per MW hour for 35 years.