Hinkley Point nuclear project in southern England approved
China and France will finance the new power station
UK government will take 'special stake' in nuclear plants
France's EDF and China's CGN welcome new deal
Unions back decision, but Labour and climate groups are critical
Bank of England upgrades UK growth
Image source, Getty ImagesA spokesman for Prime Minister Theresa May says the new controls in the Hinkley deal will safeguard the project.
He said it was a "good deal" for consumers and would help secure Britain's energy supply for decades.
One of Mrs May's first major decisions on taking office was to pause the project, which will be French-built and Chinese-backed.
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The BBC's Reality Check team has crunched the numbers on how much Hinkley will end up costing each household.
To pay back France's EDF and the Chinese government for shouldering the cost of building Hinkley, the UK government has guaranteed them a fixed price for the electricity the nuclear plant produces.
The latest estimate is that it will add £29.7bn to household bills over 35 years.
If you calculate that per household per year then you get to £25 per household per year, Reality Check concludes.
Theo Leggett
BBC Business News Reporter
The plant at Hinkley Point is expected to provide 7% of Britain's electricity needs for 60 years. Most of the £18bn cost will be met by the French firm EDF, which will also build and operate the plant.
China General Nuclear Power Company will provide a third of the funding.
To recover their investment, they will be allowed to charge a guaranteed price for the electricity they generate, which is currently well above market levels.
Simon Jack
BBC Business Editor
Image source, ReutersIt's a yes - with strings.
A new agreement means that the government will be able to block the sale of EDF's controlling stake in Hinkley. The government will also take a special or "golden share" in all future new nuclear projects.
This will ensure that significant stakes cannot be sold without the government's knowledge or consent.
There will also be increased scrutiny of the national security implications of foreign ownership of critical infrastructure.
There is no specific mention of China's plans to design and build their own reactor at Bradwell but Chinese company CGN have welcomed this decision and sources close to the company say it will press ahead with their Bradwell ambitions under these new rules with confidence.
The price of the electricity, the parties involved and the future of UK nuclear all look the same. That will prompt some to ask what the hiatus since July's surprise review has really achieved.
Image source, ReutersHinkley Point A and B nuclear power stations near Bridgwater, Somerset
Another climate change think-tank, EG3, external, has weighed in with criticism of the Hinkley decision, arguing that it will use "expensive 20th Century technology that would soon be obsolete".
"There are faster, cheaper, cleaner and smarter ways to deliver affordable, secure, low carbon electricity to Britain’s consumers," says EG3's chairman, Tom Burke.
"Nothing about this deal is good for Britain’s hardworking families. They will pay the bill for decades but the jobs will go abroad. It is bad for consumers, bad for the climate and bad for the country."
Image source, PAProtesters in Somerset, in July this year
The environmental campaign group Greenpeace has attacked the Hinkley decision.
"There are still huge outstanding financial, legal and technical obstacles that can’t be brushed under the carpet," says John Sauven of Greenpeace.
"Today's decision hasn’t been made on the cold, hard facts that show Hinkley will not deliver competitively priced, low carbon energy any time soon. Instead it seems that Hinkley became too big to fail.
"The new arrangement for a government special share changes almost nothing on the Hinkley deal and time will tell what it means for Bradwell in Essex, which is due to use Chinese technology," he adds.
The climate science research group, the Energy and Climate Intelligence Unit, external, has argued that Hinckley C is unnecessary, and that there are cheaper alternatives.
Its director, Richard Black (a former BBC science correspondent) points to potential hurdles ahead.
Quote MessageFrench trade unions don’t like it, nor do some of the likely candidates for the French Presidential Election next year, EDF’s finances are not the healthiest, and the French nuclear regulator is examining flaws in steel used for a similar reactor being built in France. So it may turn out not to be quite as ‘final’ as it looks now."
Image source, CGNCGN has yet to gain UK approval for its own proposed nuclear reactors
China General Nuclear Power Corp (CGN) is "very happy" with Britain's decision to approve the construction of a part Chinese-invested nuclear plant at Hinkley Point in Somerset, the company said on Thursday.
The company can now work with its partner, the French utility firm EDF, to provide Britain with a safe, reliable, sustainable source of low carbon energy, it said on its official Weibo microblog.
Image source, EDFThe Institution of Civil Engineers (ICE) has given the Hinkley deal the thumbs-up. "Nuclear provides a good base load power source, but the new fleet is at least 10 years away from power generation and capacity margins are tightening," says Nick Baveystock, the ICE's director general.
"The Prime Minister's decision to approve the project is a major step forward for the future of UK energy security," he adds.
Image source, ReutersFrench energy firm EDF says it's "delighted" with today's approval after "ten years of preparation and rigorous planning".
It confirms it will give the government written assurances on its commitment to Hinkley Point - a key part of the new deal.
EDF says it will also "work vigorously" with China's CGN on the two nuclear reactors, tap into the strengths of British nuclear, and will be supported by hundreds of French businesses.
Quote MessageThe decision of the British Government to approve the construction of Hinkley Point C marks the relaunch of nuclear in Europe. It demonstrates the UK's desire to lead the fight against climate change through the development of low carbon electricity. This decision demonstrates confidence in the EPR (European Pressurised Water Reactors) technology and in the world renowned expertise of the French nuclear industry.
EDF boss Jean-Bernard Lévy (pictured)
China's investment in the Hinkley project is tied up with plans for state-backed firm CGN to build its own nuclear power station in Bradwell, Essex.
China General Nuclear Power Corp will be issuing a statement later, which is expected to back Theresa May's approval for Hinkley.
However, Labour's shadow energy minister Barry Gardiner says there are "real questions" over CGN's plans to build the Bradwell plant.
BBC business editor Simon Jack points out that the government's greater control over future nuclear projects - a crucial part of the new Hinkley deal - could have a big impact on Bradwell.
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The trade group for UK nuclear is obviously delighted at today's decision. It points out Welsh steel, Scottish pumps and nuclear components from across England’s industrial belt will be used at Hinkley Point.
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BBC Monitoring
News from around the globe
Image source, ReutersTheresa May met French President Francois Hollande in Paris shortly after taking office
The French paper Le Figaro, externalsays the UK government's decision to give the Hinkley Point project the green light is "An eagerly awaited verdict, especially in France, on account of the industrial and financial stakes for EDF."
Another French daily, Le Monde, external, quotes a French presidential source as saying that "Theresa May called President Hollande last night to inform him of the British government's agreement" and that both leaders "welcomed this project, which demonstrates excellent Franco-British cooperation in the spheres of industry and energy".
Image source, Getty ImagesFrance is also applauding the approval. The French government, which owns Hinkley operator EDF, said it was "good news" for the French nuclear industry.
"This marks a major milestone in Franco-British industrial and energy cooperation," French economy minister Michel Sapin said.
The £18bn project has divided opinion in France at a time when EDF's finances are stretched already by the absorption of loss-making nuclear plant builder Areva.
When Theresa May delayed her decision, China - a major investor in Hinkley Point - warned the two countries had come to a "crucial historical juncture".
BBC political editor Laura Kuenssberg says Beijing is happy with today's approval (and its new conditions) for the nuclear plant.
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Chris Johnston
Business reporter
Image source, PAUnions are very pro-Hinkley because of the thousands of jobs the project will create - and that stance has been underlined by TUC general secretary Frances O’Grady (pictured).
"We are pleased ministers have ended the uncertainty over Hinkley Point. This project will create thousands of quality jobs and apprenticeships and bring much-needed investment to the South West," she says.
“But the government must not stop here. It is time to get the shovels out for a third runway at Heathrow, high-speed rail and new affordable homes. Now is the time for the government to make the infrastructure investments our economy desperately needs.”
Roger Harrabin
BBC environment analyst
Ministers have wrestled with its cost, Chinese backing, long delays, and design uncertainties.
They have concluded on balance it still offers the most secure route to keeping the lights on without breaching the UK’s laws on climate change.
It comes against a background of turmoil in the energy industry.
Government economists previously projected the UK’s long-term electricity would be based on nuclear, offshore wind, and technology to capture carbon emissions from burning gas.
Carbon capture has stalled. But in its place there’s a smart energy revolution, with computers and internet-linked machines balancing demand and supply of power. What’s more, the price of storing intermittent renewable energy in batteries is tumbling.
Some environmentalists say the UK can ignore nuclear and bet on the smart technologies to keep industry running.
The government has clearly decided that bet involves more risk than embracing a technology many consider a dinosaur.
Today Programme
BBC Radio 4
Labour is also questioning the government's decison to push ahead with the Hinkley Point project, saying Theresa May's team should have negotiated a lower price for the electricity the plant will produce.
The government should - and could - have negotiated a lower strike price for Hinkley Point power, says shadow energy minister Barry Gardiner.
No great surprise that the Greens aren't impressed with the decision to go ahead with Hinkley Point, as co-leader and MP for Brighton Pavilion Caroline Lucas tweets:
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Image source, Getty ImagesBusiness secretary Greg Clark tells the BBC the government will have a "special share" in Hinkley, and all future nuclear power deals, where national security is concerned.
The "share" would not be a financial stake, but would essentially give the government a veto over changes in ownership.
When asked whether the French and Chinese had agreed to these conditions he said it was for them to "consider their response" but the UK Government wanted to go ahead with the deal.