Austria sues UK over nuclear power plan

The fight over the EU's energy future heated up on Monday, after Austria took legal action against the bloc's executive over a decision to sign off on EU subsidies for Britain's first nuclear power project in decades.

The Alpine nation, a clean-energy apostle since the 1970s, said it had filed a lawsuit at the European Court of Justice (ECJ) in Luxembourg, arguing that the European Commission violated the EU's commitment to supporting renewables.

"Subsidies are there to support modern technologies that lie in the general interest of all EU member states. This is not the case with nuclear power," Austrian Chancellor Werner Faymann said in a statement on Monday.

"Nuclear power plants are dangerous, expensive and - compared with...wind, hydro and solar energy - neither economically nor ecologically competitive," he added.

Nuclear lightning rod

But it is not just Brussels' support of Britain's choice of energy source that has invited controversy. Opponents are also lashing out at the Commissioners' decision to back such a project, the price tag of which is already threatening to explode: Whereas the Hinkley Point C nuclear power station was initially billed at 16 billion British pounds (22.6 billion euros, $25 billion dollars), EU officials now estimate the total will be closer to 25 billion British pounds.

Adding fuel to critics' fire, the British government has also guaranteed French utility group EDF, which will build the two new reactors in Somerset, a generous, elevated 35-year fixed electricity rate.

In its legal challenge, Austria argued this would breach EU law and risk distorting the energy market. However, the EDF on Monday was quick to dismiss claims of foul play, insisting the project was "fair and balanced."

"The agreements...were approved by the European Commission following a robust and lengthy investigation. EDF Energy is confident that these agreements will continue to withstand any challenge," the company said.

Nuclear needed for clean energy future?

London, for its part, has repeatedly stressed that the new reactors are vital for Britain's plan to replace 20 percent of its ageing nuclear power and coal plants over the coming decade, while at the same time reducing carbon emissions.

"New nuclear power stations will also be key to cutting the carbon emissions from Britain's electricity industry in the UK's future low carbon energy mix," the government said after the EC gave the green light for the project.

However, Austrian Environment Minister Andrae Rupprechter made clear on Monday he didn't buy that argument, saying that nuclear energy was no longer able to "survive economically" and should "not be artificially resuscitated through state subsidies."

"Instead of funding unsafe and costly energy forms that are outdated, we have to support Europe's energy turnaround with the expansion of renewable energies," he said.

'Pragmatic choices'

Austria has carried that torch since 1978, when voters there rallied behind a bill banning the use of nuclear energy to produce electricity. Today, more than three-quarters of the country's power comes from renewable sources, which also make up more than one-third of its total energy production.

But the country is far from alone in the legal fight against Britain's plan. The government of Luxembourg, as well as an alliance of ten German and Austrian utility companies, have also declared war on the Hinkley project, filing a legal challenge at the ECJ.

However, by attacking Britain, the critics have also placed themselves in the line of fire.

"Not all countries are in Austria's position - lucky enough to be able to count on hydro power built decades ago," Agneta Rising, director general of the World Nuclear Association, shot back after Vienna filed the lawsuit.

"Most others have to make pragmatic choices."

pad/jr (AFP, dpa, Reuters)