nuclear-news

A headache for Britain – its reliance on China for nuclear technology

UK’s reliance on China’s nuclear tech poses test for policymakers, Britain risks alienating Beijing if it scraps power deals over security concerns, Ft.com, 15 Feb 19, 

The UK has no easy way to block China’s ambitions to export nuclear reactor technology to Britain on security grounds, despite growing public anxiety about Chinese involvement in sensitive infrastructure, according to people familiar with the situation. The government’s willingness to permit the state-owned utility, CGN, to participate in the UK’s nuclear power generation programme has raised eyebrows in recent months as Chinese investment has come under hostile scrutiny, both in Europe and the US.

In October, an assistant US secretary of state, Christopher Ashley Ford, even warned the UK explicitly against partnering with CGN, saying that Washington had evidence that the business was engaged in taking civilian technology and converting it to military uses. More recently, concerns about the Chinese telecoms company Huawei and cyber security have also prompted calls for the government to back away from closer energy ties. But government policies requiring nuclear projects to be “developer-led”, and interlocking commitments given to Chinese investors by David Cameron’s government in 2014, make it awkward for the government to reverse course………..

Is Chinese involvement really a problem? Opposition to the deal ranges from the strategic to the practical. Economist Dieter Helm said he finds it astonishing that an independent nuclear military power should be “complacent about allowing potential enemies into the core of its nuclear technologies”. Some critics also worry about the availability of fuel and spares in what will be a 60-year plant should Britain and China fall out………..

The bigger risk to CGN’s ambitions may be the UK’s waning appetite for more nuclear reactors, and the lack of competitive tension among developers in seeking new deals. A report last summer from the National Infrastructure Commission warned against “rushing” to support more nuclear stations and suggesting only one more be agreed before 2025, preferring to place bigger bets on renewable energy.

The government has been lobbied by EDF to consider a new form of financing for nuclear, known as the regulated asset base model, which would impose a charge on consumers during the construction phase, helping to reduce the project’s cost of capital, and potentially unlocking private sector investment. This could make the highly geared French group less dependent on Chinese capital to proceed with Sizewell C. According to one civil servant, the business department, BEIS, is considering these proposals “very seriously”.

In the meantime, CGN, which declined to comment on its UK operations, continues to invest heavily in the UK. The total is £2.7bn and counting on Hinkley, the design assessment for the Bradwell reactor and 340 megawatts of renewables plant. According to a source close to CGN: “This is an important year and it is important to remember that the company is a utility, not a bank.” “The Chinese see this UK deal as a strategic imperative and seem intent to do what it takes to make it happen,” said the consultant. “If the UK has changed its mind, it is going to be hard to let them down gently.” https://www.ft.com/content/7734e3be-2f6f-11e9-8744-e7016697f225

February 16, 2019 - Posted by Christina Macpherson | China, politics international, safety, UK