UK Finance Minister George Osborne said that the new government guarantee, provided by Infrastructure UK, will help French energy company EDF in making final investment decision for the project.
The project is supported by China General Nuclear and China National Nuclear, and both the Chinese companies will give green signal to the project later this year.
Designed to generate about 7% of UK’s total electricity, power plant is expected to create more than 25,000 jobs and strengthen Britain’s energy security by providing reliable, affordable low carbon electricity for decades.
Osborne said: "Nuclear power is cost competitive with other low carbon technology and is a crucial part of our energy mix, along with new sources of power such as shale gas.
"It is another move forward for the golden relationship between Britain and China – the world’s oldest civil nuclear power and the world’s fastest growing civil nuclear power."
The power station will also help the country to meet its goal to replace around quarter of its capacity due to ageing nuclear facilities and decommissioning of coal power plants, over the next ten years.
In 2014, the European Commission (EC) approved £17.6bn subsidy deal between the UK government and EDF for the Hinkley Point C project plant.
Under the terms of the deal, EDF Energy and project partners will be guaranteed a price of £92.50 ($151.25) /MWh, representing double the current market price of electricity, by the UK Government, over a period of 35 years.
However, non-nuclear country Austria later sued the EC over decision to approve subsidy deal claiming that the UK’s decision to pay a guaranteed price to EDF and its partners for the project does not comply with the European law and would affect the energy market in the region.
Image: Work underway on the Hinkley Point C construction site. Photo: courtesy of EDF Energy.
