London [UK], Sept. 15 : United Kingdom Prime Minister Theresa May has given a green signal to the Hinkley nuclear power project, but with new security conditions on the 18 billion deal.
The decision will be officially announced in the Commons on Thursday after May unexpectedly placed the project under review, causing tensions with China.
Under the deal, the French state company, EDF will build the major plant with 6bn investment from China, without any changes to the original price tag, reports the Guardian.
Despite concerns that the rate is far higher than the market rate, the government is keeping a guaranteed price of 92.50 to EDF for every megawatt hour of electricity generated.
Reports suggest that Greg Clark, the business secretary, is introducing some new security restrictions which also includes a ban on EDF being able to sell its interest without the approval of the UK government.
The move is said to be new national security test for all foreign investment in critical infrastructure, which could hamper Beijing's goal of developing its own plant at Bradwell in Essex and making a more active investment in Sizewell B in Suffolk.
So far, Beijing has not confirmed that it wants to proceed with the investment in Hinkley. The Chinese officials had earlier in a series of veiled warnings said that a decision by Britain to halt their investment in UK nuclear would be seen as a snub.
This would also put at risk a supposed golden era of relations between the two countries. With May's go ahead of the project means Hinkley will be the first new nuclear reactor built in Britain in two decades.
Source: ANI
