EDF and China strike deal over Hinkley Point

EDF Energy and China General Nuclear Power Corporation (CGN) have reached an agreement over the nuclear power station to be built at Hinkley Point in Somerset.

State-owned CGN have signed a deal worth £6Bn that will see them own a third of the power station, with EDF retaining a 66.5% stake but will look to bring in other investors without bringing its own stake under 50%.

The deal also set up a wider UK partnership to create new nuclear power stations at Sizewell and Bradwell.

Prime Minister David Cameron and Chinese President Xi Jinping witnessed the signing of the deal on the second day of the President’s UK state visit.

Over £30bn worth of deals between the UK and China are expected to be agreed during the visit.

EDF Chairman, Jean-Bernard Lévy, said: “I am confident that our experience and ability mean we will successfully deliver Hinkley Point C and subsequent projects. We are planning for a final investment decision within weeks so that we can move forward with construction.”

George Osborne had previously announced on his recent visit to China that the government will provide a £2Bn investment through its Infrastructure Guarantee Scheme.

The government’s position on Hinkley has drawn criticism following its decision to cut subsidies for rooftop solar panel installations by 87%.

The nuclear power station at Hinkley Point will provide 25,000 jobs and generate enough energy to power six million homes.

Construction at the plant is now expected to begin within weeks following many delays.

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