EC draws fire after approving UK’s nuclear energy subsidies

Facebook
Twitter
LinkedIn
Reddit
Email

The European Commission is facing severe criticism after it gave state aid approval for £17 billion (US$27.3 million) worth of nuclear energy subsidies.

The UK government has agreed a 35-year, inflation-linked price guarantee of £92.50 (US$148.8) per MWh, with the option to increase this 15 and 25 years in.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Commission vice president Joaquín Almunia, in charge of competition policy, said: “After the commission's intervention, the UK measures in favour of Hinkley Point nuclear power station have been significantly modified, limiting any distortions of competition in the Single Market. These modifications will also achieve significant savings for UK taxpayers. On this basis and after a thorough investigation, the commission can now conclude that the support is compatible with EU state aid rules.”

Meanwhile, the government, on the EU’s direction, has been developing a competitive framework for renewables to bid for support in order to acquire the best value for tax payers, prompting claims of unfair support for nuclear energy.

“How can the European Commission ask renewables to integrate in the energy market, while at the same time validating another subsidy to nuclear?” said James Watson, CEO of European Photovoltaic Industry Association (EPIA). “EPIA previously raised concerns about the State Aid rules as they force renewables to integrate into a market that is not yet designed for them. We need new energy market rules that allow for a cost-effective energy transition, not £17 billion subsidies for nuclear power,” he added.

“In order to drive public and private investments, and deliver an energy transition that a vast majority of European citizens want, renewables need fair access to the market. That includes policymakers adopting a balanced attitude towards different energy technologies. [The decision] simply constitutes a step in the opposite direction,” said Watson.

Greenpeace called the deal “a world record sell-out to the nuclear industry”.

“It’s such a distortion of competition rules that the commission has left itself exposed to legal challenges,” said Andrea Carta, legal advisor for Greenpeace. “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.”

Austria is expected to challenge the decision in the European Court of Justice.

The UK’s new contracts for difference (CfD) support scheme, which sees different renewable technologies compete for the same budget, has been praised by the EU for promoting competition and good value for consumers.

Read Next

September 12, 2025
Colombian energy supplier Celsia is seeking more than US$1.2 billion in investment to build wind and solar generation projects in Peru. 
September 12, 2025
German trade association BSW-Solar has called the German government for a simplified, standardised and more digitalised grid access for solar PV and energy storage operators.
September 12, 2025
ACME Venus Urja has secured INR3.8 billion (US$43 million) to develop and construct a solar-plus-storage project in Barmer, Rajasthan.
Premium
September 12, 2025
Vote Solar's Sean Garren tells PV Tech Premium that Georgia Power's latest IRP is 'skewed so heavily towards fossil fuels'.
September 11, 2025
Founder Group has won a RM10 million (US$2.3 million) engineering, procurement, construction and commissioning contract for a 30MW solar plant in Malaysia.
September 11, 2025
German renewable energy developer ib vogt has signed a 70MW solar PV virtual power purchase agreement (vPPA) in Romania.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines