Engineering news
The final go-ahead has been given by the European Commission for a new £16 billion nuclear power station in the UK.
Commissioners approved revised plans to subsidise and operate the plant, which will be built by EDF Energy at Hinkley Point in Somerset.
The commission has been examining funding for the power station under state aid rules since December.
During the in-depth investigation, the EC said the UK had agreed to "significantly modify" the terms of the project financing. As a result, the state aid provided will remain "proportionate to the objective pursued, avoiding any undue distortions of competition in the Single Market" said an EC statement, adding: "The modifications also reduce UK citizens' financial contribution to the project."
The government predicted last year that the new Hinkley Point C station, coupled with the prospect of other new nuclear sites, could reduce bills by an average of £77 a year.
The agreement with French-owned EDF Energy, will see the Somerset station begin operating in 2023. The power station will have a 60-year operating life.
Austria, which strongly supports green energy, has threatened to take the EC to the European Court of Justice.
Meanwhile, environmental campaigners warned that energy policy will be distorted by displacing newer, cleaner, technologies that are dropping "dramatically" in price.
Greenpeace's environmental legal adviser Andrea Carta said: "There is absolutely no legal, moral or environmental justification in turning taxes into guaranteed profits for a nuclear power company whose only legacy will be a pile of radioactive waste. This is a bad plan for everyone except EDF."
The Stop Hinkley Campaign expressed "extreme disappointment" in the decision. Spokesperson Allan Jeffrey said: "This deal is clearly illegal under European law. It will saddle UK consumers with the bill for paying huge subsidies for decades, and yet there are more cost effective and safer ways of providing low carbon electricity or not using the energy in the first place. It is mind boggling how the UK government managed to convince the commissioners to go along with this crazy plan without even the pretence of a competitive process.
"The technology proposed for Hinkley Point C is well past its sell-by-date. It's time for Somerset to look to the future and develop a locally-controlled sustainable energy industry which doesn't involve leaving a toxic legacy for our grandchildren's children and which can tackle climate change and fuel poverty in a much more cost effective way."
However, the unions have welcomed the prospect of a new generation of nuclear power stations. Garry Graham, deputy general secretary of nuclear workers' union Prospect, said: "This is fantastic for jobs, consumers and the UK economy. Nuclear new-build is a key component in providing the UK with low-carbon energy generation for the future.
"When operational, Hinkley Point C will provide 7% of our energy needs for generations to come. Its construction and operation will provide thousands of high-quality skilled jobs while the £16 billion investment will give a real boost to businesses on both a local and national level.
"More importantly, this will give confidence for what has been termed the UK nuclear renaissance and provide the impetus for other nuclear new-build sites, including NuGen in Cumbria and Horizon at Oldbury and Wylfa."