Reports say government is looking to keep state-owned energy company out of financing future schemes
Nuclear projects in the UK including Hinkley Point C could be at risk with the government looking to bar China鈥檚 state-owned energy company from being involved in future projects.
According to the Times, ministers are considering alternatives to the involvement of China General Nuclear Power Group (CGN) in the 拢20bn Sizewell C nuclear power plant in Suffolk.
The government could also move to stop CGN鈥檚 involvement with other projects, such as plans for a new nuclear power plant at Bradwell-on-Sea in Essex.
But a government source told the Times ministers will have to 鈥済o cautiously鈥� because China is a major investor in Hinkley Point C in Somerset, which will become the first new nuclear plant for a generation when it opens. 鈥淚t鈥檚 very sensitive,鈥� the source said. 鈥淚f we push too hard on Sizewell it could have wider implications.鈥�
Another source said: 鈥淎ll the deals hang together. If you open up one of the deals, you open all of them. It鈥檚 never going to be as simple as 鈥榩ull out of Sizewell鈥�. I鈥檇 be amazed if CGN didn鈥檛 say: 鈥榊ou want us to put some more money into Hinkley Point? Well screw you.鈥� 鈥�
China鈥檚 investment in Sizewell and Bradwell was agreed as part of a 2015 deal in which CGN agreed to pay for a third of Hinkley鈥檚 construction cost.
Hinkley is due to open in 2026 at a cost of up to 拢23bn.
CGN is understood to have already put about 拢4bn into Hinkley Point C, meaning the Chinese company still needs to invest around the same amount again to complete the deal. It also has engineers on site.
The Times said a Whitehall source said the government was exploring ways of removing CGN from future projects.
It said two approaches were being considered, with the first involving the government buying a stake in Sizewell C, and the second finding alternative investors.
In a statement, the department for business and energy said: 鈥淎ll nuclear projects in the UK are conducted under robust and independent regulation to meet the UK鈥檚 rigorous legal, regulatory and national security requirements, ensuring our interests are protected.鈥�
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