€3.5bn price hike for UK nuclear plant
By Mike Hayes23 May 2022
Following a project review, energy firm EDF Energy has announced a delay to the delivery of Hinkley Point C nuclear plant on England’s Somerset coast, as well as a significant cost increase.
The French state-owned company – and majority owner of the plant – has set a new total cost for the project of between €29.5 billion and €30.7 billion, which is up to 44% more than its original cost estimate.
EDF further said it now has a target of June 2027, for the start of electricity generation from Unit 1 – a year later than had previously been estimated.
In a statement, EDF said, “During more than two years of the Covid-19 pandemic, the project continued without stopping. This protected the integrity of the supply chain and allowed the completion of major milestones.
“However, people, resources and supply chain have been severely constrained and their efficiency has been restricted.
“In addition, the quantities of materials and engineering as well as the cost of such activities, including, in particular marine works have risen.”
While the review took account of the main elements of the project, the schedule and cost of electromechanical works and of final testing were not included.
EDF is developing the Hinkley Point C plant as part of a joint venture with China General Nuclear Power Group (CGN).
The main contractor on the project is Bylor, which is a joint venture comprising Bouygues and Laing O’Rourke.