I recently blogged about the U.K. Hinkley Point reactor project which has been encountering problems with confidence in the French reactor designed by AREVA, price guarantees and foreign financing. Today I am going to write in more detail about the criticisms of the international financing plans for the project. EDF, the French utility that owns the construction site at Hinkley point has yet to announce its list of investors who are going to underwrite the thirty eight billion dollar cost of the Hinkley Point project.
Dieter Helm, a professor of energy policy at Oxford University rejects the whole idea of depending on financing from Chinese sources. He wants the British government to issue debt or nuclear guaranteed bonds. He says that this would lower the price of securing the financing from 10% to 2%. In addition, he points out the national security issues with letting Chinese companies become involved with the British nuclear industry. Helms serves on the economic advisory committee for the Department of Energy and Climate (DECC) change and is usually a proponent of the free market.
Amber Rudd, the DECC secretary said that the Chinese might be allowed to build, own and operate a new nuclear power plant at Bradwell in Essex. Apparently the British government is ready to allow the Chinese to use their own equipment and supply chain at Bradwell in return for Chinese financing of Bradwell and Hinkley Point.
Gary Smith, the national secretary for energy of the General, Municipal, Boilermakers union in England, has expressed criticism of Chinese involvement in the Hinkley Point project. Smith charges that the British government appears willing to risk national security and sacrifice the jobs of British workers in return for keeping the debt from Hinkley and Bradwell off the government books. Smith pointed out that one of China's own nuclear experts has recently express doubts about the safety and reliability of Chinese nuclear components.
DECC has responded to CMB safety concerns by saying “Any proposal to build a power station would be subject to the UK regulatory regime. The same goes for components. All of them would have to be scrutinized by the (UK) office for nuclear regulation and not any regulator in any other jurisdiction.” With respect to British jobs, DECC said " “That (issue) is some way down the line but the government still wants to maximize opportunities for British manufacturers and the British supply chain.”
Critics of the Hinkley Point financing plan suggest that Beijing is trying to use the desperation of EDF and England to find outside financing for Hinkley Point to force England to accept the Chinese demand to be allowed to build, own and operate a reactor at the Bradwell site. The GMB union and other nuclear industry sources in England charge that the Chinese want to use the Bradwell reactor as a showcase for the products and services of the Chinese National Nuclear Corporation to obtain other international reactor contracts.
It will be interesting to watch the negotiations proceed on the Hinkley Point project. With so many players and so many problems, it may ultimately be cancelled.
Artist's concept of new Hinkley Point reactors:
