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Theresa May caved in, approving Hinkley nuclear, but the nuclear debate is far from over

while Hinkley could finally become a reality, the debate about nuclear power stations is far from over.

Hinkley must not be taken as a precedent for other nuclear stations https://www.theguardian.com/business/2016/sep/18/hinkley-point-not-precedent-other-nuclear-bradwell-sizewell-cgn, 18 Sept 16

Political reality made it hard for Theresa May to deny the French and Chinese their project. But other new plants still can, and should, be opposed. Despite the majority of the British public being opposed to a new nuclear power station at Hinkley Point C, according to various surveys, Theresa May has approved the £18bn project.

The arguments against it are well understood – cost, safety and national security. On the first point, George Osborne, the former chancellor, was on the radio supporting the project last week, claiming that the costs would be borne by French group EDF and its Chinese partner CGN.

That is disingenuous at best, misleading at worst. EDF and CGN expect to make a profit from their investment and the National Audit Office has said the project could cost taxpayers almost £30bn in subsidies to these companies.

Other factors May had to consider when making a final call about whether to go ahead with Hinkley included the diplomatic repercussions of scrapping a project that was significant to France and China. The shadow of Brexit also hung over the decision: this is not a time to be damaging relationships with two key trading partnerships.

EDF and CGN’s reputations were on the line. EDF has lost its finance director and is at war with its trade unions because of the project. China – a country not renowned for taking disappointment well – has said the opportunity to invest in UK nuclear will allow it to advertise its technological expertise to the world.

As a result, May faced a decision akin to not inviting your boss to your wedding. It is your day, you are more than entitled to make that decision and you probably shouldn’t have invited them in the first place: but snubbing them is not going to be positive for your career prospects.

The government was not overwhelmed by alternatives either. Yes, Rolls-Royce could build smaller nuclear reactors around the country and yes, other forms of renewable energy could help. But Hinkley is scheduled to start producing electricity by 2025 and deliver 7% of the UK’s energy needs. Could the other options really deliver that much electricity in the same time frame?

One of the criticisms of Hinkley is that it is an answer to an old question, with energy requirements and technology evolving all the time. Well, yes: that is partly because the project was first dreamt up 10 years ago – and to block construction now would eradicate a decade of work.

Taking all this into account, it looks like May and her government have played the percentages. They may not have been excited about the idea of Hinkley, but the cons of scrapping it at this stage probably outweigh the pros.

However, Britain’s energy strategy beyond Hinkley is another matter. It was surprising that alongside the government’s announcement that the nuclear power plant would go ahead there were suggestions emanating from Whitehall and Beijing that similar projects in Bradwell, Essex, and Sizewell, Suffolk, were also on track.

The Bradwell B project is particularly noteworthy because CGN will design the reactor and own two-thirds of it. The Chinese company plans to submit its design for Bradwell within weeks.

May and her government must seriously think about whether they want more nuclear power stations popping up around the country. While the decision on whether to proceed with Hinkley became wrapped up with diplomatic issues, Bradwell and Sizewell must only be approved if the government genuinely believes they are the best solution to Britain’s energy issues. Most experts would say they are not.

Stopping Bradwell and Sizewell would not be straightforward: one of the main reasons that CGN supported Hinkley Point was so it could develop its own power station at Bradwell. However, it is possible that the Office for Nuclear Regulation and the government could, for example, reject CGN’s design for the reactor. Or the Chinese could be offered the opportunity to invest in another high-technology project on attractive terms, such as High Speed 2.

So, while Hinkley could finally become a reality, the debate about nuclear power stations is far from over.

September 19, 2016 - Posted by Christina Macpherson | general