Austria Tries to Block U.K. Nuclear Project

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Austria is trying to derail the U.K.'s nuclear power ambitions by filing a legal challenge with the European Court of Justice.

The Austrian government has followed through on its threats by filing an official objection to the planned, 3,300-megawatt (MW) Hinkley Point C project in Somerset, England. It claims that the U.K. government's financial deal with French project developer Electricite de France (EPA:EDF) (EDF) (Paris) amounts to unfair state subsidies, breaches European completion law, and risks distorting the energy market.

Austria's actions fly in the face of the project already receiving the green light from the European Commission (E.C.) in October last year, after a lengthy investigation. The E.C. ruled that the U.K. government's deal with EDF to offer a guaranteed electricity price for 35 years did not breach European Union (EU) state aid rules. For additional information, see October 9, 2014, article - Europe Green Lights U.K. Nuclear Project.

The £16 billion ($24.9 billion) Hinkley Point C is the U.K.'s first new nuclear plant project in more than 20 years. The project will use two European Pressurized Reactors (EPRs), which will be capable of generating enough power for 5 million homes--approximately 7% of the U.K.'s total electricity demand when the plant is commissioned in 2018.

"Subsidies are there to support modern technologies that lie in the general interest of all E.U. member states," argued Austrian Chancellor Werner Faymann. "This is not the case with nuclear power."

The action by Austria--a longtime opponent of nuclear power--drew fire from the World Nuclear Association.

"It is one thing to have an opinion, it is quite another to try and force your opinion on someone else," said Agneta Rising, director general of the World Nuclear Association. "The U.K. public, indeed people in all countries, have the right to choose nuclear to meet their energy needs and to help address climate concerns if they so wish. It is a pity that the Austrian government has decided not to respect that right."

The U.K. government remains committed to creating a new fleet of nuclear power stations in the coming decade. Speaking at the Nuclear Industry Association conference recently, U.K. Minister of State Andrea Leadsom said: "There should be no doubt that this Government is absolutely committed to nuclear power. We see new nuclear power stations as a vital part of the infrastructure investment needed in our electricity sector to ensure our future energy supply. Nuclear energy plays a critical role in the government's security of supply and decarbonisation goals. The U.K.'s nine existing nuclear power plants generate around 20% of our electricity demand. But all bar one of these power stations are expected to shut by 2030. In total, industry has set out plans for five new nuclear projects in the U.K., for a total of up to 16 GW of new nuclear capacity, providing around 35% of electricity generation".

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