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UK nuclear subsidies could be illegal |
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13 Dec 2013, 2:10 PM
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An EU investigation into the UK's financial support for new nuclear power stations is dividing Europe, with critics saying London is flouting EU rules by offering illegal subsidies.
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A full-scale investigation is being launched into whether Britain's deal with French nuclear giant EDF, backed with money from Chinese nuclear generators, to build new stations at Hinkley Point in the west of England, is illegal state aid.
The investigation by the European Commission is a serious blow to the nuclear industry in Europe and across the western world, because it delays any expansion of the industry for at least a year and may possibly permanently damage its prospects. British Government officials are optimistic that the investigation can be over quickly. It believes that by mid-2014 clearance will have been given for two reactors - costing £16 bn - to be built. If built on time they would provide 7% of Britain's electricity by 2023.
Objections to the deal are expected to be numerous, however, and an investigation could take far longer than that. If the decision goes in favour of the UK it will be a serious blow to the renewable industry, so supporters of wind, solar, wave, tidal and bio-gas technologies are all likely to submit objections.
For example Mark Turner, a director at the UK's leading solar power generator, Lightsource Renewable Energy, has written to Prime Minister David Cameron to point out that Britain's solar industry can deliver the same energy production at the planned Hinkley Point C within 24 months and at comparable cost.
Credits:: Climate News Network
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