A German energy cooperative will take legal action against the European Commission for approving state aid for a £16 billion nuclear power plant in Britain, it said yesterday, arguing it threatens to distort competition.

The project, to be built by French utility EDF at Hinkley Point in southwest England, is crucial for Britain’s plan to replace a fifth of its ageing nuclear power and coal plants in the coming decade while reducing carbon emissions.

The plan to pay a guaranteed price for power produced at the plant faces opposition from some other countries and some EU policymakers, as well as some other energy suppliers.

“Highly subsided nuclear power from this plant will noticeably distort European competitiveness,” said Soenke Tangermann, managing director of Greenpeace Energy, which describes itself as Germany’s largest national independent energy cooperative.

Tangermann said it would affect prices at the power exchange in Germany and could also set a precedent. “This effect will have economic disadvantages for committed green power providers like us,” he said in a statement.

He added the group would file a plea for annulment at the European Court of Justice in Luxembourg as soon the Commission’s approval was published.

Non-nuclear Austria said in January it would take the European Commission to court within two months of it publishing its decision to approve Britain’s plans for Hinkley Point.

Germany, Europe’s biggest power market, is in the midst of an ambitious switch to green energy as it phases out atomic energy. Greenpeace Energy says it supplies more than 111,000 customers with clean electricity.