nuclear-news

EDF Energy says that “challenging ground conditions” mean costs could be £2.9 billion higher, taking the total bill to £22.9 billion. This might seem only of interest to EDF shareholders, given the controversial subsidy deal for the plant means consumers are protected from cost overruns.

But the potential significance of this is much bigger – it could cast a cloud over the UK’s hopes of a new wave of nuclear power plants. Ministers want more nuclear power in the energy mix alongside renewables, to meet carbon targets and provide continuous electricity supply.

Two Japanese companies have already pulled out of plans to build new nuclear plants in the UK, leaving EDF Energy’s designs for a second one at Sizewell in Suffolk as the main option. But the government’s proposed financial model for Sizewell C is very different to the one agreed for Hinkley. Unlike that deal, the “regulated asset base” (RAB) model under consultation for future plants would see consumers paying through energy bills while power stations are still being built.

The main trade-off with the RAB deal was that loading more construction risk onto consumers should make it cheaper to raise funds and therefore cheaper electricity, says Jonathan Marshall at non-profit the Energy and Climate Intelligence Unit.

But the more delays and over-runs there are, it will add to concerns that consumers will be left to pick up an ever-increasing bill, he says. “Consumer groups and others that are against the new framework are going to point to the delays at Hinkley as evidence that billpayers will be liable to pay more than planned to bring new power stations online.”……

What are the alternatives? Some nuclear proponents think small modular reactors could do the job. But the technology for commercial ones is still years off and analysis suggests they could even be more costly than conventional large ones…….  https://www.newscientist.com/article/2217725-could-rising-costs-at-hinkley-point-c-end-the-uks-nuclear-ambitions/