Hinkley Nuclear Power Plant: Solution or Disaster

There are those that have called the Government plans of expanding the nuclear power plant at Hinkley Point, Somerset, as foolish. It has potentially devastating consequences as shown with the Chernobyl and Fukushima  meltdowns. They made the surrounding area unlivable for lifetimes. Moreover there is the more practical problem of disposing of nuclear waste which could contaminate the environment if not disposed of properly. Conservationists see it as a backward step for the British Environmental Policy.

From a pragmatic view, some see the foreign owners (EDF Energy and Chinese investors) of the plant as Britain losing dominance and financial capability to even meet its own energy needs. There is also an underlying distrust of foreign ownership which cannot be easily explained. In addition, a nuclear plant has not been built for about 50 years and some are calling it an out-dated technology.

However, the 'strike price' of double the current price of electricity has caused by far the most outrage. This is surely a dangerous move on the Government's behalf guaranteeing high energy prices for the consumer or taxpayers money being diverted to the subsidy. Is this actually the case? Did the Government get a bad deal?

The environmental issues will never go away but regulations and technology have improved drastically since the days of Chernobyl. Moreover, it is worth reminding that it took both an earthquake and a tidal wave to cause only a partial meltdown at the Fukushima Plant in Japan. Hinkley Point will be much less at risk from these natural events since it is in the UK so meltdown concerns should be minimal.

Foreign investment could prove a masterstroke as the Government is building a plant for nothing therefore not increasing debt yet stimulating the economy through the creation of jobs (estimated at around 30,000). Even though there have been no new nuclear plants over the past decade it cannot be said it is out-dated. It is one of the most efficient and sustainable energy sources in the world. The 'strike price' does not deserve the stick it is getting shown by four of the 'Big Six' energy companies already raising their prices by about 10pc. The plant will be fully operational by around 2023 and if prices rise at the rates they are now this plant will guarantee a cheap source of energy for the UK. The expansion of Hinkley Point will lead to it producing about 7pc of the UK energy demand.

People will always be skeptical of a previously disastrous projects and high prices. However, in 10 years, this may be looked back on as the first step to achieving energy self-sustainability.