The yet-to-be-built power plant has had a chequered past, and has come up against criticism for its cost. With an agreed strike price of £92.50/MWh – falling to £89.50/MWh if EDF decides to build another set of reactors at Sizewell C – many have questioned its value for money, particularly when the cost of renewable alternatives is falling fast.
EDF’s final investment decision has outraged the pro-renewables cohort, which has slammed the government for allowing the project to go ahead.
Meanwhile pro-nuclear experts have welcomed the decision, saying it sends a “positive signal” at a time of uncertainty, and hoping it will kick-start a nuclear new-build programme.
However, just hours after EDF made its decision to go ahead, business and energy secretary Greg Clark announced that ministers would review the project yet again.
The government will “consider carefully all the component parts of this project and make its decision in the early autumn”, he said.
Tom Greatrex, chief executive, the Nuclear Industry Association
“This is an important moment for the UK nuclear sector. Over the last decade, the case has been demonstrated for nuclear power as part of a balanced, reliable, secure and low carbon electricity system of the future.
“We are now entering an important new phase, creating jobs, security and skilled workers for the UK supply chain.
“This will be the first new nuclear power station to be built in a generation and the first to be built without direct state funding. This major infrastructure project will give a vital boost to UK industry, our manufacturing supply chain and construction industry – demonstrating that even with the prospect of leaving the EU, the country is open for business.”
#Hinkley good deal pfor EDF if they can operate it by 2029 (expensive for UK energy users) -potential disaster for EDF if not done by 2034.
— Angus B MacNeil MP (@AngusMacNeilSNP) July 28, 2016
Tony Ward, head of power and utilities, EY
“We should recognise that the UK’s electricity system is changing rapidly, especially in the transition to a more distributed, diverse mix for our power generation. However, the robustness and reliability of the system as a whole will still demand large-scale base-load power.
“Today’s announcement is the start of a process to replace some of the existing low carbon nuclear capacity that the UK has already closed, and more that will close in the years to come.
“Much preparatory work has already been done, with many contractors and partners in place. The challenge now shifts from getting the project structured to that of delivering to time and cost.”
Tories have just put up the cost of your electricity by giving a blank cheque to EDF for a power station that doesn’t work
— Jeremy Corbyn MP (@jeremycorbyn) July 28, 2016
Barry Gardiner, Labour’s shadow energy secretary
“EDF have mismanaged the Hinkley project; but the government has mismanaged the public interest in it.
“They committed to paying a price for 35 years that was far too high when the cost of other low carbon energy from solar and wind has been falling to record lows. Now the government has had to admit that bill payers will pay an extra £24 billion on top.
“This project is already eight years delayed, it still has serious technical problems and the government has no assurance that it will be producing power by 2025 when coal is no longer supplying what we need. The government should insist on a taper so that customers pay less for any further delay.”
It’s hard to imagine a worse deal than Hinkley Point project. If this pause equals a genuine rethink by Government, that’s very good news.
— Zac Goldsmith (@ZacGoldsmith) July 28, 2016
Molly Scott Cato, Green Party member of the European parliament
“This decision is a massive blow to businesses and consumers who will now be forced to pay for some of the most expensively generated electricity on earth. It squanders the huge potential we have for renewable energy resources in the South West.
“This project is totally discredited. EDF is not trusted either by its shareholders or many of its employees, both of whom have expressed grave doubts about Hinkley.
“The only thing that keeps this white elephant stumbling along is a blind ideological obsession with nuclear power from the Tories and a determination to show that Brexit Britain is still open for business. This is one business we could all do without.”
Richard Black, director, the Energy and Climate Intelligence Unit
“With similar reactors in France and Finland seriously over time and over budget, France needs a Hinkley success if it’s to persuade anyone in the West that it’s still a serious player in the global nuclear industry.
“So it’s a risk worth taking for France; but is it for Britain? In a world moving towards cheaper, flexible, decentralised power systems, investing in eye-wateringly expensive always-on ‘baseload’ power plants increasingly looks like a 20th century solution for a 21st century problem.”
Late to the latest Hinkley news, but remember when Greg Clarke was last Tory energy boss, he only backed nukes if they were subsidy free.
— Martyn Williams (@MartynWilliams2) July 28, 2016
Hugo Chandler, director, New Resource Partners
“This may be good for confidence post the referendum, and good for jobs, and it’s something of a relief to know one way or the other, but it is still not clear that it’s good for the UK. The fact is that Hinkley C’s electricity will be very expensive, as will management of its waste, and we still don’t have a long-term solution for that.
“When Hinkley C finally does come online it will indeed produce low-carbon electricity, but not as cheaply as offshore wind. And it will need to generate around the clock to justify the cost of building it.”
Josh Hardie, deputy director-general, CBI
“The final green light for Hinkley Point is welcome news as now, more than ever, action is needed on key infrastructure projects which attract investment to the United Kingdom.
“The project represents a significant milestone in the United Kingdom’s energy future. It will play a key role in further securing and decarbonising our energy supply, putting us on the right path to a sustainable energy mix.
“We hope it will also help kick start a new nuclear build programme, creating jobs for tens of thousands of people – not just in the local community, but up and down the whole country.”
Dave Cockshott, chief commercial officer, Inenco Group
“The decision to proceed with a new nuclear site at Hinkley Point sends a positive signal at a critical time for investment in the energy market, but this is not the silver bullet that will solve the UK’s energy problems – this is only the start of an expensive and high risk process.
“Hinkley Point must now be built on time and to budget. The UK government has underwritten £7 billion of the project, which could be at risk should Hinkley be subject to similar delays and overspend as other EPR projects in France and Finland.
“Beyond the £18 billion construction costs that EDF and its Chinese partners must finance, the government’s contract with Hinkley will bind households and businesses to subsidies amounting to £30 billion that will be passed through on to energy bills for the next 30 years.”
John Sauven, Executive director, Greenpeace
“This is a bitter pill to swallow for hard up people who have been told that the government is trying to keep bills down while dealing with energy security and lowering carbon emissions.
“Today’s decision doesn’t prove the UK is open for business post Brexit – it just shows the Hinkley deal became too big to fail in the eyes of British and French politicians.
“Similar reactors to Hinkley have never been built on budget or on time. It hasn’t even been shown to work yet. The first attempt in Finland is currently 10 years behind schedule. This government should be supporting renewable energy companies whose power plants are safe, quicker to build and coming down in cost.”
EDF give #HinkleyPoint the green light, which is also something you may see around anyone who lives within 25 miles of it once it’s built.
— David Schneider (@davidschneider) July 28, 2016
IMAGE: Hinkley reaction word cloud