Reports related to this article:
Project(s): View 1 related project in PECWeb
Released September 29, 2014 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K.'s first new nuclear project in 20 years could be back on track after reports suggested that a European Commission (EC) investigation will clear the project of allegations that it would receive unfair state aid.
"Our discussions with the U.K. authorities led to an agreement," explained Antoine Colombani, a spokesman for EC Competition Commissioner Joaquín Almunia, speaking to The Telegraph. "On this basis, vice-president Almunia will propose to the college of commissioners to take a positive decision in this case. In principle a decision should be taken within this mandate."
In January, Industrial Info reported that the EC had opened an "in-depth investigation" into the U.K. government's financial support scheme for the proposed £16 billion ($25.8 billion) Hinkley Point C nuclear power project. It set out to scrutinize whether the government's plan to subsidize the construction and operation of a new nuclear power plant at Hinkley Point in Somerset were in line with European Union (EU) state aid rules. At the time, the EC said that guaranteed prices for power flew in the face of the "volatility of the wholesale electricity price." For additional information, see January 6, 2014, article--Europe Launches 'In-Depth Investigation' into New U.K. Nuclear Plant.
Under its contracts for difference support scheme (CfD), the government struck a deal with project owner, French energy giant Electricite de France (EPA:EDF) (Paris), to provide a guaranteed power price for a period of 35 years, when the Hinkley Point C nuclear plant is commissioned. The government agreed to a "strike price" of £89.50 per megawatt hour (MWh) if EDF's other planned nuclear project at Sizewell C goes ahead. If not, the Hinkley Point C strike point will be £3/MWh higher at £92.50/MWh. For additional information, see October 21, 2013, article--First New U.K. Nuclear Project Moves Forward.
Following the reports that the EC will clear the project, a spokesperson for EDF Energy said: "Confirmation that vice-president Almunia recommends that the College of Commissioners approve the agreement on Hinkley Point C is another positive step forward for this vital project. The process to gain approval continues in line with the expected timetable. This agreement between the U.K. Government and EDF for the first new nuclear power station in Britain since 1995 is fair and balanced for consumers and investors alike. The State Aid investigation has been rigorous, robust and thorough and we expect that the College of Commissioners will recognize this. Hinkley Point C is an important project which will deliver Europe-wide objectives, offering the prospect of reliable, secure and low carbon electricity for many decades to come as well as boosting jobs and skills."
Hinkley Point C is a 3,300-megawatt (MW) nuclear power plant that will use two European Pressurized Reactors (EPRs), which will be capable of generating enough power for 5 million homes--about 7% of the U.K.'s total electricity demand--when they are commissioned in 2018. The project will be overseen by Nuclear New Build (NNB) Generation Company (NNB GenCo), which was formed by EDF.
View Project Report - 300009866
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
"Our discussions with the U.K. authorities led to an agreement," explained Antoine Colombani, a spokesman for EC Competition Commissioner Joaquín Almunia, speaking to The Telegraph. "On this basis, vice-president Almunia will propose to the college of commissioners to take a positive decision in this case. In principle a decision should be taken within this mandate."
In January, Industrial Info reported that the EC had opened an "in-depth investigation" into the U.K. government's financial support scheme for the proposed £16 billion ($25.8 billion) Hinkley Point C nuclear power project. It set out to scrutinize whether the government's plan to subsidize the construction and operation of a new nuclear power plant at Hinkley Point in Somerset were in line with European Union (EU) state aid rules. At the time, the EC said that guaranteed prices for power flew in the face of the "volatility of the wholesale electricity price." For additional information, see January 6, 2014, article--Europe Launches 'In-Depth Investigation' into New U.K. Nuclear Plant.
Under its contracts for difference support scheme (CfD), the government struck a deal with project owner, French energy giant Electricite de France (EPA:EDF) (Paris), to provide a guaranteed power price for a period of 35 years, when the Hinkley Point C nuclear plant is commissioned. The government agreed to a "strike price" of £89.50 per megawatt hour (MWh) if EDF's other planned nuclear project at Sizewell C goes ahead. If not, the Hinkley Point C strike point will be £3/MWh higher at £92.50/MWh. For additional information, see October 21, 2013, article--First New U.K. Nuclear Project Moves Forward.
Following the reports that the EC will clear the project, a spokesperson for EDF Energy said: "Confirmation that vice-president Almunia recommends that the College of Commissioners approve the agreement on Hinkley Point C is another positive step forward for this vital project. The process to gain approval continues in line with the expected timetable. This agreement between the U.K. Government and EDF for the first new nuclear power station in Britain since 1995 is fair and balanced for consumers and investors alike. The State Aid investigation has been rigorous, robust and thorough and we expect that the College of Commissioners will recognize this. Hinkley Point C is an important project which will deliver Europe-wide objectives, offering the prospect of reliable, secure and low carbon electricity for many decades to come as well as boosting jobs and skills."
Hinkley Point C is a 3,300-megawatt (MW) nuclear power plant that will use two European Pressurized Reactors (EPRs), which will be capable of generating enough power for 5 million homes--about 7% of the U.K.'s total electricity demand--when they are commissioned in 2018. The project will be overseen by Nuclear New Build (NNB) Generation Company (NNB GenCo), which was formed by EDF.
View Project Report - 300009866
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
