The move would exclude CGN from the consortium planning to build the £20bn Sizewell C nuclear plant in southeast England, as well as one in Bradwell-on-Sea in Essex.
According to The Guardian, a source confirmed a report by the Financial Times that revealed the government is exploring ways of removing CGN from future projects.
Sizewell C is the only nuclear new-build project in the UK for which planning permission is being sought. EDF of France and CGN are 80% and 20% shareholders in the project to build two EPR units at the site. Plans for Bradwell, where CGN and EDF are planning to build a single HPR1000, or Hualong One plant, remain in the early technical stages
China’s involvement in nuclear power in the UK dates back to an agreement endorsed by then prime minister David Cameron and Chinese president Xi Jinping in 2015.
Some Conservative Party MPs have called for a review of nuclear contracts on the grounds that China is not a “trusted vendor”. Some believe Britain no longer needs CGN’s money because prime minister Boris Johnson’s government might be willing to contemplate public subsidies or new financing methods for new nuclear.
Earlier this month the Financial Times reported that ministers were in the process of drawing up legislation that will allow the construction of the two Sizewell C units through a regulated asset base (RAB) financing scheme.
The RAB model encourages investment in major infrastructure projects by delivering reliable returns, at a reduced rate, before a plant is operational. This reduces the need for large-scale, long-term borrowing at high interest rates, which significantly increases the cost of power.
The RAB approach is widely used internationally and has attracted investors for the construction of UK infrastructure projects including the Thames Tideway Tunnel and the Heathrow Terminal 5.
A spokesman for the Department for Business, Energy and Industrial Strategy said: “Nuclear power has an important role to play in the UK’s low-carbon energy future, as we work towards our world-leading target to eliminate our contribution to climate change by 2050.
“All nuclear projects in the UK are conducted under robust and independent regulation to meet the UK’s rigorous legal, regulatory and national security requirements, ensuring our interests are protected.”
