All eyes on Hinkley
The European Commission's decision that the revised UK support package for EDF's Hinkley Point C nuclear project is compatible with EU state aid rules does not necessarily provide an easy blueprint for subsequent projects. Other EU nuclear project sponsors and investors face a number of difficult issues that should be at the heart of planning for subsequent projects, write George Borovas, Nick Buckworth and James Webber.
The Commission found that although the UK's deal with EDF included state aid, such aid was permissible. This was particularly so given the need to support private financing for a project of such "unprecedented nature and scale." Even so, the Commission tightened the economics of the project considerably.
This decision will provide important guidance for nuclear state aid throughout the EU. However, it also highlights challenges for subsequent projects.