DAVID Cameron and China’s President Xi Jinping will be pleased. The Department of Energy and EDF Energy will be pleased and relieved. So how should the rest of us react to the news, scarcely unexpected, that the China General Nuclear Corporation (CGN) will take a £6 billion stake in the development of the Hinkley Point C power station?
Some, a diminishing number, will assert that a new nuclear plant, possibly the first of three, can have no safe place in the energy mix. Others will question why a strategic need is being met by a French-Chinese joint venture, with CGN gaining a 33.5 per cent share of key infrastructure. Those observing a Conservative government at work will note one irony: the corporation is wholly owned by the Chinese state.
These are lesser matters. Those who have brokered this deal, Chancellor George Osborne among them, have yet to explain why Hinkley Point represents value for the taxpayer’s money. The United Kingdom has given numerous guarantees just to get the station built. Chiefly, it has granted a per megawatt hour “strike price” of £92.50 for the electricity produced. That is better than double the current wholesale price. The cost will come, as enviable certain profit for EDF and CGN, from consumers’ pockets.
Though the station will be built in Somerset, Scotland should take a close interest. For one thing, the Hinkley strike price is also substantially above the guaranteed price for onshore wind. That form of renewable energy has been at the heart of a Scottish strategy, for better or worse, yet Mr Osborne has cut subsidies while giving every assistance to EDF in its long search for an investment partner. The contrast is striking.
Before CGN, an enterprise doing its government’s bidding, no one could be found to join the French in the Hinkley project. That fact alone is troubling. Nuclear plants are fantastically expensive to build – the £18 billion quoted by EDF sounds optimistic, given past experience – and still more expensive to decommission.
Scotland might have its own looming nuclear problem in the ageing form of the Torness station, but all concerned have much to do to prove that Hinkley Point is truly a good deal for Britain.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here