The government has given the go-ahead to the £18bn Hinkley Point C nuclear power station, but has announced new “safeguards” for foreign investment in infrastructure.
The controversial project in Somerset was unexpectedly placed under review by prime minister Theresa May, causing tensions with China.
Following the review and a revised agreement with EDF, the scheme will proceed and the new legal framework for international investment will also apply after Hinkley.
The agreement means the government can prevent the sale of EDF’s controlling stake before construction is completed and can intervene in the sale once the station is operational.
Under the new legal framework the government will take a special share in all future nuclear projects so stakes cannot be sold without its knowledge.
The Office for Nuclear Regulation will have to be notified by developers or operators of nuclear sites of any change of ownership or part-ownership. This will allow the government to advise or direct the ONR to take action to protect national security as a result of a change in ownership.
The public interest regime in the Enterprise Act 2002 will also be reviewed and a cross-cutting national security requirement for continuing government approval of ownership of critical infrastructure will be introduced.
The government says this will ensure that the full implications of foreign ownership of critical infrastructure are scrutinised for the purposes of national security.
The UK presently has eight power stations which generate around 20% of the country’s power. Almost all of them are due to close by 2030.
Hinkley Point C will provide 7% of Britain’s electricity needs for 60 years. The government says that UK-based businesses are expected to benefit from more than 60% of the £18bn value of the project.
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