Due to mechanical and electrical costs and delays, the date for starting up the first reactor at the site has been put back to 2030
According to the EDF’s financial results, the Hinkley Point C delay has also brought the construction cost to £35bn in 2015 numbers, or around £48bn in contemporary prices.
The original start date for the first reactor when the project was approved in 2016 was 2025, which has slowly shifted to 2027, then 2029, and now 2030, over time.
Delays will cost billions
The reasons for the delay are listed in the results as an “impairment of €2.5 bn on the Hinkley Point C project, essentially due to the £3/MWh reduction in the Contract for Difference strike price to £89.50/MWh (in 2012 sterling) following the final investment decision for Sizewell C, fully offset by the £1.6 bn payment to Hinkley Point C for the project expertise and series effect that has benefited Sizewell C, and the 12-month delay in commissioning of Unit 1 due to the electromechanical work.”
It was stated in the results that a further setback to 2031 would cost another £1bn. Despite the setback and warning, however, EDF chief executive Bernard Fontana described the new expected start date as “more reasonable.”
The financial results can be read in full here.
Nuclear is a part of the UK’s long-term strategy
Earlier this month, a new Advanced Nuclear Framework was launched to encourage further private investment into nuclear technologies and build new projects.
This framework is the first-of-its-kind, and also is aimed at projects that are the first of their kind, generating enormous amounts of power to sustain the UK’s artificial intelligence, datacentre, and manufacturing goals.
The framework will open for proposals from March, with government endorsements and financial support available for successful applicants.
Beyond the framework, the UK has made deals to support the creation of 12 advanced modular reactors in Hartlepool, and the conversion of an old coal-fired power station in Cottam into a small modular reactor station.
Minister for nuclear, Patrick Vallance, said: “Advanced nuclear technology could revolutionise how we power industry and propel the AI data centre boom – delivering more clean energy and jobs.
“We are seizing the opportunity to become a frontrunner in this space as part of our golden age of nuclear, creating the conditions for the industry to flourish.”
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