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Hinkley Point C delayed again and project costs rocket

The schedule for the nuclear power plant in Somerset has been hampered

By Toby Codd and Hannah Baker South West Business Editor 25 JAN 2024

Somerset's Hinkley Point C nuclear power plant could be delayed by a further four years, with costs also spiralling to as much as £35bn, French energy giant EDF has admitted.

The station, near Bridgwater, is set to be the UK's first new nuclear plant since the 1990s. Construction began in 2016 and the project was originally estimated to cost £18bn to build. But the scheme has struggled with its schedule, first announcing in 2022 that it would be delayed and costs could rise to £26bn.

It was hoped Hinkley Point C would be completed in 2027, but France's state-owned energy operator EDF has now said one of the reactors could be finished in 2029 at the earliest - but it could be as late as 2031.

In an update, EDF announced the Hinkley Point C project had recently achieved a series of milestones. These include the delivery of 70% of equipment for Unit 1, the finalisation of the detailed design for the next phase of electromechanical work, and the creation of steam generators which are now ready to be delivered.

Bosses at Hinkley blamed the delays on "several scenarios" including the impact of inflation, Covid-19 and Brexit.

In a letter to staff, Stuart Crooks, the managing director of Hinkley Point C, said substantial design changes, required by British regulations, meant there were 7,000 changes that needed to be made to the site. He explained that 35% more steel and 25% more concrete was needed than originally planned.

He said that the dome lift was delayed by 15 months due to the pandemic and construction has been slowed by inflation, and labour and material shortages. Mr Crooks added that increased civil construction costs have made the project run for longer and cost more money.

EDF said: "The costs of completing the project are now estimated at between £31bn and £34bn in 2015 values. The cost of civil engineering and the longer duration of the electromechanical phase (and its impact on other work) are the two main reasons for this cost revision.

Last year, a report from the Heart of the South West LEP, which analysed the plant's role as a catalyst for growth, job creation, and prosperity, found the project was having a positive impact on local communities, businesses and the economy.

And in June 2023 a supply chain programme supporting the construction of the Hinkley Point C nuclear power station was found to have helped South West firms to secure £180m worth of contracts and create more than 1,000 jobs.

https://www.business-live.co.uk/economic-development/hinkley-point-c-delayed-again-28508257