EU gives regulatory approval to CGN, EDF for Hinkley Point

Chinese nuclear firm CGN and French power company EDF won regulatory approval from the European Union's competition authority on Thursday to form a joint venture to build and operate nuclear power plants at Hinkley Point in Britain.

The joint venture plans to construct and operate the first new-build nuclear power stations in the UK for a generation at Hinkley C in Somerset.

Currently CGN and EDF are still to make their final investment decision about Hinkley. If they decide to invest, Hinkley will become the first nuclear power station involving a Chinese company in a developed market.

The clearance from the EU follows the Strategic Investment Agreement signed in London in the presence of UK Prime Minister David Cameron and visiting Chinese President Xi Jinping in October last year. Hinkley Point C nuclear power plant alone is projected to supply around 7 percent of the UK’s electricity needs.

Under the Strategic Investment Agreement, EDF’s share in Hinkley Point C will be 66.5% and CGN’s will be 33.5%. Without reducing this initial stake below 50%, EDF intends in due course to bring other investors into the project.

Last week both the British and French governments renewed their backing for the project.

The European Commission said it did not see any serious competition issues.

"The Commission's investigation found that competition in the wholesale supply of electricity in the UK will not be hindered by the transaction given the moderate market share of EDF, the very limited market shares of CGN in this market and the presence of other competitors," it said in a statement.

To contact the reporter: cecily.liu@mail.chinadailyuk.com