PM Hails Historic Nuclear Deal With China

China has signed a deal with French energy giant EDF (Paris: FR0010242511 - news) that paves the way for Britain's first nuclear power plant in a generation.

The investment by Beijing in the new site at Hinkley Point in Somerset, was confirmed as part of a raft of agreements the Government hopes will amount to about £30bn.

The announcement was made as the Chinese president Xi Jinping continued his four-day state visit to the UK.

Prime Minister David Cameron hailed the "historic deal", which he said would provide "reliable, affordable energy" for six million homes.

However, there are concerns over the security implications of China's involvement in the nation's critical infrastructure.

MI5 has identified spying by Beijing, including cyber espionage, as one of the biggest current threats to Britain's national security.

There are fears China could identify weaknesses at vital facilities, which could be exploited at a later date using malware.

State-owned China General Nuclear Power Corporation (CGN) will have a 33.5% stake in Hinkley Point C, with the rest held by EDF.

The two companies also agreed a wider partnership for the joint development of new nuclear power stations at Sizewell in Suffolk and Bradwell in Essex.

EDF boss Vincent de Rivaz has no concerns over security, telling Wednesday evening's edition of Ian King Live: "Safety and security is the overriding priority for us.

"The Chinese are going with us along the same values of safety and security. We trust them, they trust us."

Mr de Rivaz added that UK customers would save £30-a-year on their bills compared with an energy mix that did not include nuclear, and said it was "good for the environment" to have "reliable, low-carbon, secure energy for decades to come".

The construction costs of the Hinkley plant is forecast to total £18bn and it should start generating power in 2025.

Some 25,000 jobs will be created during the building phase of the plant, while it will support 900 direct jobs during its 60-year lifespan.

The scheme also aims to create 1,000 apprenticeships along with £14m of investment in education and training.

He Yu, chairman of China General Nuclear Power Corporation (CGN) said: "Entering the UK's nuclear market marks a new phase for CGN.

"CGN is highly committed to delivering safe, cost efficient, and sustainable energy and to supporting the UK's goal of becoming a low-carbon society."