nuclear-news

A couple of weeks ago, EdF formally confirmed that no decision would be taken on Hinkley Point before the General Election, and probably not before the end of the year. The reason it gave was that: “We are in the final phase of negotiations, but that phase can take a considerable amount of time, depending on the number of problems left to resolve.”

And that list of problems is daunting. First, it needs to be able to sign final deals with co-investors, including the Chinese, who are beginning to cut up rough; then it needs final confirmation from the European Commission and the UK Government for a whole load of issues regarding the waste transfer contract; it needs to finalise a £10bn loan guarantee from the Treasury; and, despite months of discussions, it needs to conclude negotiations with the UK Government regarding the subsidy contract.

You’ll notice that this list does not include any delays that may be caused by the Austrian Government challenging the EU’s decision to approve as ‘legal’ (within the EU’s state aid rules) the billions of pounds of subsidy that the UK Government will pump into the project. EdF doesn’t talk about that, as it still hopes that the Austrians will be ‘persuaded’ by the UK Government to withdraw its challenge.

And the UK Government is certainly intent on doing exactly that. Over the last few months, details have been trickling out about the retaliatory measures UK Ministers are now threatening in a demonstration of state bullying that beggars belief. A leaked memo showed UK ministers asserting that “the UK will take every opportunity to sue or damage Austria in the future.”

Which shows just how desperate the Coalition Government has become, having put all its notionally ‘low carbon’ eggs in the nuclear basket – a decision that has forced ministers to go to extraordinary lengths to get the Hinkley Point project over the line. Influential commentator Dr Philip Johnstone, Research Fellow at the Science Policy Research Unit, put it as follows:

“Every wish of the nuclear industry has been granted by the UK Government. The British planning system has been ‘streamlined’, with nuclear a key inspiration of the need to speed things up. The Government has created one of the best institutional contexts in the world for developing nuclear, with a new Office for Nuclear Regulation and the Office for Nuclear Development, and has ensured that nuclear regulators are equipped to pre-license designs for new build. As well as this, a strategic siting assessment and environmental assessment were carried out, further ‘streamlining’ the process of new nuclear construction. Electricity Market Reform has been brought in, where, despite being a mature technology, nuclear was granted Contracts for Difference at double the current market rate for the next 35 years.”

But none of that cuts much ice with the Austrians, and if their challenge proceeds, nobody quite knows how long a delay that might entail. It will certainly be years, not months……..

All this chaos and confusion must surely mean that, post Election, we might at last be able to get back to a serious debate about energy policy here in the UK, without Hinkley Point distorting every single aspect of today’s Electricity Market Reform, shadowing out every single policy alternative, and holding back the mindset andbehavioural revolutions amongst both business and the general public on which our energy future really depends.

We’ve already paid a very significant price for Labour’s sad surrender to the seductive lies of the nuclear industry, and for this Coalition Government’s near-incomprehensible decision to pursue the EPR reactor design for Hinkley Point. Between them, they’ve dug a hole already so deep that they have no idea what to do other than to keep on digging.

So let’s just hope that those Austrians stick to their guns with their legal challenge, for this is by far the longest and by far the most robust rope-ladder up which those benighted politicians – and ever-more benighted pro-nuclear greenies – will soon – ever so thankfully – be able to climb. http://www.jonathonporritt.com/blog/hinkley-point-beginning-end