Chancellor George Osborne, who is currently in China has been under negotiations with China over a deal where The U.K would invest £2 billion to China in order to rejuvenate the Hinkley Point power Station.
The decision comes as a final step from the delayed French project by EDF Energy, and will result in what Mr Osborne suggests as greater partnerships between The U.K and China over the construction of nuclear power plans.
EDF Energy has shown support of the Chancellors talks with china, as its proposed project in Hinkley which was due to be generating power by 2023 would be delayed, and since February has expressed concern over investing in the nuclear plant.
The Company has said that it cannot afford the £24 billion cost that is estimated for the plant, and so has been building a portfolio of financial investors particularly in china, which is why the government has now stepped in over negotiations.
Reports also suggest that the £2 billion deal would help build a new reactor in Bradwell, Essex, which could be the first nuclear plant in Britain within the last 20 years. Amber Rudd, the Energy Secretary has also shown her support saying she wanted china to take a bigger lead in developing new nuclear plants in Britain.
Speaking in Beijing with China’s Vice-Premier Ma Kai, Mr Osborne said: “We want the UK to be China’s best partner in the West and pave the way for Chinese investment in UK nuclear to make it secure, reliable, low carbon electricity for decades to come.”
He also announced a new £50m joint research centre for nuclear energy.