CHINA has emerged as a potential buyer for a stake in a group of UK nuclear power plants. According to UK media reports, China General Nuclear Power Group (CGN) is interested in a stake in EDF Energy that is up for sale.

EDF Energy bought the plants for  GBP12.5 billion in 2008, with Centrica taking a 20% stake, which it now wants to sell.

In addition, French owned EDF Energy may be interested in selling some of its own shares to CGN, potentially giving CGN a 49% stake. EDF is under financial pressure and is looking to sell assets, reduce debt and improve its credit ratings.

Such a move would be controversial in the UK, given concerns about Chinese involvement in critical infrastructure. However there are very few credible buyers for nuclear assets worldwide, so such investment might be welcome, and the UK has a more open access on infrastructure than most EU countries.

EDF Energy operates seven advanced gas cooled reactors and one pressurized water reactor (Sizewell B) in the UK. They are: Dungeness B on the East Anglian coast; Hartlepool on the north east coast; Heysham 1 on the north west coast; Heysham 2; Hinkley Point B in Somerset on the south west coast; Hunterston B on the west coast of Scotland; Torness on the east coast of Scotland; and Sizewell B on the East Anglian coast.

The eight nuclear plants generate 8.9GW of electricity, supplying around 20% of current UK needs.

From the Chinese side, a major investment in UK nuclear plants would help CGN establish itself in Europe, where it has long term plans to export its own nuclear reactor models.

Two years ago, the UK government temporarily put on hold the CGN investment in the Pounds 18 billion Hinkley Point C project. But this one third stake was later approved.

Hinkley Point is currently one of the biggest building sites in Europe, as the UK builds its first new nuclear power station since 1995.

CGN is already working with EDF Energy on plans to develop a new nuclear power station at Bradwell-on-Sea in Essex.

Photo: EDF Energy