Shapps refuses to confirm fee for buying out China’s Sizewell C stake
Business Secretary Grant Shapps refused to provide a figure for the cost of buying out China’s stake in proposed nuclear project Sizewell C.
The cabinet member told a body of Westminster MPs yesterday he was “not trying to be evasive” but that the data remained “commercially sensitive” to EDF and the China General Nuclear Power Group (CGN).
The Government has reportedly paid CGN £100m to exit the project, according to the Financial Times, however Shapps declined to confirm this to the BEIS Select Committee yesterday.
The state-backed Chinese group previously owned a 20 per cent share in the upcoming project but has since announced its exit from the site following negotiations with EDF and the Government.
Chancellor Jeremy Hunt recently confirmed £700m in public support for the project, and the Government plans to hold at least a 50 per cent stake during the development phase.
Overall, Sizewell C is expected to cost between £20-35bn and be operational by the mid 2030s, if it manages to reach a final investment decision in the next two to three years.
It is also highly likely to be selected for public funding via the regulatory asset base model in the next 12-18 months.
Sizewell C: UK’s last hope for reviving nuclear?
Sizewell C is a proposed 3.2GW nuclear power plant of near-identical design to Hinkley Point C, overseen by EDF.
If completed, it could provide enough power to fuel six million homes while generating seven per cent of the UK’s energy mix.
Shapps defended the project amid concerns of its overall cost and production delays at sister site, Hinkley Point C, which is two years behind schedule and £8bn over-budget at £26bn.
He said: “Nuclear can provide a helpful baseload for the right kind of energy mix in this country.”
The Business Secretary hoped nuclear power could provide 25 per cent of the UK’s energy mix – with the Government looking at potential additional sites for new plants such as Wylfa in North Wales and small modular reactors which could be built in dozens of locations across the country.
The Government has included plans to boost nuclear generation from 7GW to 24GW over the next three decades in its energy security strategy, which was established following Russia’s invasion of Ukraine to boost the country’s energy independence while reaching its climate goals.
Domestic nuclear generation has dropped to 18 per cent this year following the closures of Hinkley Point B and Hunterston B.
Four further reactors from the UK’s ageing fleet are set to close by the end of the decade, putting more pressure on the Government to boost generation.
Shapps wanted nuclear to be part of a diversified mix of energy sources alongside other power sources such as offshore wind – where he described the UK as a “world leader.”
He said: “I don’t want to put all our energy eggs in one basket, ever.”