French ministers and EDF chiefs have called for the final investment decision on the Hinkley Point C nuclear project to be given the go ahead as soon as possible, as critics question its viability in the post-Brexit vote climate.
Emmanuel Macron, the French economy minister, did his best to assure that the Brexit vote had no effect on commitments regarding the Hinkley project.
He said: “”Britain remains an important economic partner and its energy needs are still the same and this is why I still consider that a timely EDF investment decision on Hinkley Point is needed.”
The chief executive of the EDF group, Jean-Bernard Levy, has made similar assurances, and a letter signed by the general secretaries of four major UK trade unions have also added their support. They impressed both the importance Hinkley generally in terms of the UK’s energy supply, as well as the importance of making a final decision in the context of providing precedent for future infrastructure projects post-Brexit.
The letter said: “The UK trade unions are 100 per cent in support of Hinkley Point C and believe that it is vital to make a final investment decision in a timely fashion soon after the consultation process (between EDF and the French unions) is completed (on 4 July).
“Nuclear new build is already behind the curve; we cannot afford further delay and it is vital for EDF to make a final investment decision now.
“From an energy perspective, the UK needs the electricity. We are rapidly losing capacity and this process will continue as the UK coal stations and nuclear stations reach the end of their operating lives.
“At the same time, we are committed to making a transition to a carbon-neutral balanced energy policy in the UK, including nuclear and renewables.
“Much is at stake in both France and the UK in terms of jobs, skills, social dialogue, industrial capability and prosperity into the future.”
However, critics are now raising doubts about the viability of making a final investment decision at a time when the political landscape of the UK is so uncertain.
A source told the Guardian that the board at EDF is currently very much divided on the issue.
The newspaper was told: “The situation for Levy was already very delicate. But it has become a lot more difficult because there is so little certainty about the British government.”
This sentiment was echoed by the head of Poyry Management Consulting, Richard Slark, who said: “It will be very difficult for investors to commit to new projects given the currency volatility, policy risks and growth uncertainties that Brexit has introduced.”
There will be a lot of eyes on the progress of the Hinkley investment decision as a test-case for large investment in UK projects following the Brexit vote.
Kevin Coyne, national officer for energy at the Unite union, said: “The final investment decision by EDF Energy in Hinkley Point will be the first litmus test, following the Brexit vote, that much-needed investment in large infrastructure projects is still coming on stream.”
