In 2015, China General Nuclear Power (CGN) has signed an investment agreement with EDF for the construction and operation of the Hinkley Point C project.
As per the terms of the deal, CGN will acquire 33.5% stake in the power plant by investing €6bn through its new company, known as General Nuclear International (GNI).
The remaining stake will be owned by EDF, which is also considering potential investors for the project. The firm, however, intends to retain majority stake in the project.
The European Commission said in a statement: "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."
EDF plans to make a final investment decision on the Hinkley Point C project in the near future.
The approval follows the recent resignation of EDF CFO over concerns that the project could put the company’s financial position at risk.
Recently, the French and UK Governments expressed intent to give their support for the project, which is expected to meet 7% of the UK’s electricity needs upon commissioning scheduled in 2025.
Image: Illustration of Hinkley Point C nuclear power plant. Photo: courtesy of EDF Energy.
