Hinkley project 'safe' from Brexit

Nuclear plant faces no long-term effects after referendum vote, French partner says

The unexpected Brexit vote has put additional focus on short-term uncertainties related to a major UK nuclear project being developed by Chinese and European companies.

The feedback from companies and experts, however, indicates there should be no long-term impact.

The deal between China General Nuclear Corp and Electricite de France SA for the planned construction of the Hinkley Point C project in southwest England attracted wide publicity and speculation ahead of the referendum vote on June 23, as a would-be Brexit was widely seen as imposing additional financial pressure on the already much-delayed program.

In an email to China Daily, Paris-based EDF says there will be no impact on the company's strategy in the UK, but it will have to adjust to brand-new economic conditions and exchange rates.

Zhou Dadi, deputy director of the China Energy Research Society, who is also a senior researcher, says the UK's goal to have more clean energy in its future energy mix will not be changed by the "big decision" of Brexit.

"The UK will go down its clean path in the future despite its vote to leave the EU, because it already made promises to cut emissions during the Paris climate change conference. Therefore, I don't think it will have any impact on nuclear power projects," he says.

Victor L.L. Chu, chairman of First Eastern Investment Group, says the UK's departure from the EU would fan some uncertainties about the flagship power project in the short term due to exchange rate fluctuations. However, he says Chinese companies in any future negotiations in the sector will seek to gain the upper hand and benefit in the long run.

"The French company may want Chinese investors to take a larger share, but I think CGN will take cautious steps before accepting any offer," he adds.

Contact the writers through lvchang@chinadaily.com.cn

(China Daily Africa Weekly 07/02/2016 page26)