George Osborne, Britain’s chancellor, will today unveil a deal to build the country’s first reactor since 1995, relying on Chinese investment and French technology, in what he hopes will be a fresh start for the UK’s civil nuclear programme.
The China General Nuclear Power Group (CGN) and EDF, the French energy company, are expected to sign a letter of intent as the two sides agree a deal for a planned new nuclear plant at Hinkley Point in the southwest of England. The main commercial details of the deal will be announced on Monday.
The shift to non-fossil-fuel energy such as nuclear is seen as crucial if Britain is to meet its binding targets for cutting carbon emissions and keep the lights on. But the government is also running the risk of a consumer backlash by promising investors high energy prices for their new plants to entice them to invest.