In October last year, the EU approved the state subsidy for the $24bn project, which is being constructed by French utility firm EDF.
Austria contends that the UK’s decision to pay a guaranteed price of £92.50 per megawatt hour to EDF and its partners for 35 years does not comply with the European law and would affect the energy market in the region.
Austrian Federal Chancellor Werner Faymann was quoted by AFP as saying: "Subsidies are there to support modern technologies that lie in the general interest of all EU member states.
"This is not the case with nuclear power."
Greenpeace and nine German and Austrian utilities have also filed a lawsuit against the EU over its decision on the Hinkley Point C project.
To be built in southwest England, the project will replace a fifth of the country’s aging nuclear power and coal plants.
The UK has played down the lawsuit filed by Austria.
A spokeswoman for the UK’s Department of Energy and Climate Change was quoted by Reuters as saying: "The UK is confident that the European Commission’s State aid decision on Hinkley Point C is legally robust and has no reason to believe that Austria has submitted a challenge of any merit."
The nuclear project is considered to play a key role in the UK’s plan to replace one-fifth of its old nuclear power and coal plants in the next ten years.
World Nuclear Association director general Agneta Rising said: "The countries that are leading on decarburization are using nuclear energy.
"Not all countries are in Austria’s position – lucky enough to be able to count on hydro power built decades ago to provide roughly 65% of their electricity today."
Image: Illustration of the UK’s proposed Hinkley Point C nuclear power plant. Photo: courtesy of EDF Energy.
