Hinkley nuclear power plant to go ahead, government confirms

The Hinkley C nuclear power station will go ahead following a "new agreement" with EDF, the government has confirmed.

This announcement came after ITV News learned that Theresa May was poised to give the final green light to the project with new conditions attached.

Energy Minister, Greg Clark described it as a "major step forward" and an £18 billion investment in the economy creating 26,000 jobs.

He said that measures have been put in place to enhance security and ensure the plant cannot change hands without the government's agreement.

The new deal means that the principle operator EDF guarantees that they will not dispose of their stake without the government's consent in writing until the plant is built.

The government will have a "special share", Clark said, that would give it the right on national security grounds to prevent any change of ownership or control.

In the future, all other nuclear power stations will be subject to the same regime, he added.

Shortly after taking office as prime minister, Theresa May ordered a review of the project amid concerns over costs and the security implications of the involvement of the Chinese state-backed firm, CGN.

Clark said that Britain had a "very important relationship" with China and its investment is "valuable".

But he added: "I think it is important that when we are considering a major upgrade of our infrastructure that we have in place a regime that allows the government the kind of powers and scrutiny that other countries have."

Theresa May with Chinese President Xi Jinping at the G20 summit. Credit: Reuters

At the G20 summit in China, May defended delaying the scheme, insisting it was down to "the way I operate" because she wanted to examine fresh evidence.

The go ahead will spark a fresh row about the high cost of energy from Hinkley, with EDF being paid £92.50 per megawatt hour of electricity generated - around double the current market rate at the time.

CGN has a third stake in the scheme and is hoping to build other new nuclear power stations in the UK at Bradwell in Essex and Sizewell in Suffolk.