nuclear-news

EDF Energy UK chief executive Simone Rossi told the newspapaer that the firm needs assurances from government that a “viable funding model exists” for Sizewell C this year. If EDF Energy believes the project is not feasible, it may stop its involvement in the project.

EDF Energy is currently in talks with the government over a funding model for the Suffolk nuclear power plant which would reduce costs for consumers. New Civil Engineer understands pension funds are being considered as a way to help finance Sizewell C.

Rossi told The Times: “This is the year where we need to understand whether this whole thing is really feasible or not.”

He added: “If we were to conclude that maybe it’s not feasible, then at that point maybe we say we are not in a position to continue the project.”

Rossi also said expected cost savings for Sizewell C could disappear if there is a “significant delay” between work on it and Hinkley Point C.

EDF Energy has said it expects construction costs for Sizewell C to be roughly 20% less than for the £19.5bn-plus Hinkley Point C plant. This is because the new plant would almost be a replica of Hinkley Point C, and because electricity grid connections are already in place at the Sizewell C site.

In June last year the National Audit office branded Hinkley Point C “risky and expensive”.

A spokesperson for EDF Energy denied Rossi’s comments were an ultimatum and said Sizewell C would benefit from an existing supply chain, while providing jobs for 5,600 construction workers.

The spokesperson added: “We are working with Government to look at alternative financing models because reducing the cost of capital can make a significant difference to the price for consumers. Financing models that create the conditions where institutional investors like pension funds can participate.”