The Government has welcomed the £12.5 billion takeover of nuclear power firm British Energy by French utility giant EDF, hailing the deal as a milestone for the UK's energy sector.

It hopes the sale will kick-start the country's nuclear power strategy and pave the way for a nuclear revival, with a new generation of nuclear power stations already in the pipeline.

EDF said it intends to "maximise the potential" of British Energy's existing eight sites, and hopes to build four new reactors using latest technology with a total capacity of 6.4GW (2 at Sizewell in Suffolk and 2 at Hinkley Point in Somerset)

It aims to have the first of these new so-called EPR reactors up and running by the end of 2017.

While Prime Minister Gordon Brown said the move was "good value for the taxpayer and a significant step towards the construction of a new generation of nuclear stations", the Government has also made it clear that it wants the UK's nuclear industry to be opened up to competition.

EDF has agreed to sell British Energy-owned land to other potential nuclear operators should its new reactors receive the all-clear.

Paul Brennan, Head of Morgan Cole's Energy and Environment Group, comments:

EDF's target for construction of the new plant are ambitious and will depend on the successful enactment and implementation of the Planning Bill, which introduces a new streamlined consenting regime for major infrastructure of national importance.

Morgan Cole provides specialist advice on all aspects of Energy Law, including consent applications for energy plant and the implications of the Planning Bill. For further information contact Paul Brennan on 0118 955 3004.