Brussels has cleared EDF Energy’s £16 billion project to build the UK’s first nuclear reactor for a generation.
The European Commission had originally suggested that generous consumer funded subsidies awarded to the project by the government could amount to illegal state aid.
After a year-long investigation, commissioners have approved a compromise deal hammered out by the government and the French state-backed company.
EDF Energy is now able to press on with the project and hopes to sign up Chinese investors to the consortium in the next few months.
The European Commission said that the new deal was better value to consumers.
However, the headline rate of subsidy will not change from the original proposals announced a year ago.
Hinkley Point will still be guaranteed £92.50