The two organisations have written to the UK and French governments and EDF Energy warning that any further state aid for the project could be illegal. The letter makes clear that both groups would be prepared to challenge any further state funding in the courts.
The Hinkley Point project has been struggling for years, despite support from UK, French and Chinese governments. The UK government has given EDF the maximum amount of subsidy allowed under state aid rules, offering the company a 35-year subsidy at twice the market price and an export guarantee for Hinkley, but despite all this the project is still not economically viable. Last week, the French economics minister, Emmanual Macron, committed further state support for the project, support that Ecotricity and Greenpeace say would be illegal without approval from the European Commission.
“It’s time for everyone to realise that we’ve reached the end of the road for Hinkley Point – it’s not going to happen” said Dale Vince, Ecotricity’s founder. “Illegal state aid is one thing, and we’ll work with Greenpeace to challenge that if it happens – but it’s not just financial issues, there are technical problems with Hinkley Point too. EDF are yet to build one of these reactors, their first two attempts are, between them, sixteen years late and billions over budget – nobody in a normal business would attempt a third with the first two so woefully out of control. The Energy Secretary, Amber Rudd, has conceded that we don’t need Hinkley Point to keep the lights on in Britain – that’s a change of stance having previously said it was essential for that purpose.”
Mr Vince added that the government needs to go further, changing their stance on green energy – which powered a quarter of the country last year, and could do so much more if it received even a fraction of the economic and political support given to the nuclear industry.
The French Minister of State for State Reform said yesterday that EDF needs to invest in renewable energy, not nuclear technology.
John Sauven, Greenpeace UK Executive Director, said that the only way Hinkley can be kept alive is on the life support of state aid.
“EDF, if it is to stay in business, needs a new vision which is not looking backwards” Mr Sauven added. “And the UK Government needs to stop penalising the UK renewable energy industry in favour of propping up an ailing state owned nuclear industry in France. Globally, the nuclear market is shrinking year by year overtaken by the huge surge in renewable energy. The UK should be a haven for renewable energy investment given the massive potential for wind, solar and tidal to cost effectively meet our energy needs.”
The EDF board are due to meet in Paris today to discuss the much-delayed project with a final decision expected on 12th May. It needs a guarantee that the French government will underwrite the company’s involvement in order to commercially justify the huge project risks.
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