New Hinkley Point nuclear power station burns bright for investors

The UK’s newest nuclear power station for 20 years will see far higher returns for investors, including EDF, than any other project, according to new research.

The report, which comes from cross-party think-tank Carbon Connect, said that investors were likely to see returns of up to 21% over the lifetime of the project.

The government will guarantee a loan to finance the project and French energy company EDF will begin operating the Somerset power station in 2023.

The government support is the first of its kind in Europe and is generating significant international interest.

The report said: “Expected equity returns on Hinkley Point C are around 19% to 21%, substantially higher than expected equity returns on Private Finance Initiative (PFI) projects and regulated electricity network assets.”

As well as France’s EDF, other investors include Chinese state owned companies CGN and CNNC, and Areva, another French firm.

According to the Telegraph, two other investor groups are planning new nuclear power stations in the UK. They include Japan’s Toshiba and France’s GDF Suez, which are planning three reactors at a site in northern England; and Hitachi, also from Japan, is considering five reactors at two sites.

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