nuclear-news

The planning application by EDF and CGN for the Sizewell C plant has unleashed fresh questions over whether Britain needs more large nuclear plants, and stirred controversy about China’s role in critical UK infrastructure as diplomatic relations between the two countries cool, notably over Hong Kong. It also comes at a time when the government is focused on pumping money into infrastructure, including energy, potentially as part of an economic stimulus package that chancellor Rishi Sunak is set to unveil in July in response to the coronavirus crisis.

……. Another proposed plant in Cumbria was shelved by Japan’s Toshiba in 2018. Japan’s Hitachi froze its plans for a plant on Anglesey last year, although it has continued to pursue planning permission.

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 Amid delays partly stemming from technology challenges, the construction costs of Hinkley Point C and other plants using a design called the European pressurised reactor, such as EDF’s Flamanville power station in France, have spiralled. EDF said last year that Hinkley could cost as much as £22.5bn. Two-thirds of that expense will be borne by EDF and the remainder by CGN, and executives at the French company have made clear it cannot afford to shoulder that level of construction risk again. But the electricity produced by Hinkley Point C will come at a high cost to consumers. The government guaranteed EDF and CGN would receive £92.50 per megawatt hour for the power generated at the plant for 35 years in return for the companies taking on all the construction risk, including any cost overruns. That deal was based on 2012 prices and rises each year with inflation. By comparison, offshore wind developers have agreed to build projects for prices as low as £39.65/MWh in 2012 terms.

Against this backdrop, the government last year launched a consultation on a possible new funding model for new nuclear plants. The so-called regulated asset base model is attractive to developers because it would cut the cost of capital for a new nuclear plant, reflecting how consumers would pay upfront for the project through their energy bills. These consumers could be left picking up the tab for cost overruns……. https://www.ft.com/content/4e3221ef-ac1e-43cc-8d68-e1397ca0637f