The Hinkley Point C nuclear power station is encountering considerable setbacks as completion is now projected for 2029 at the earliest, with potential costs soaring to £46 billion. State-owned French developer EDF attributes these challenges to the disruptive impact of the Covid-19 pandemic, Brexit uncertainties, and inflationary pressures.
Usually, financial woes are experienced by what is regarded as the future of nuclear – Small Modular Reactors (SMRs) – but Hinkley Point C is a third generation pressurized water reactor – known as EPRs (European Pressurized Reactors).
The United Kingdom has taken some questionable stances in its approach toward climate change and the wider energy transition. That trend continues into the present, although now it takes the form of a muddled energy strategy. In late 2023 a draft of an upcoming ‘nuclear roadmap’ revealed that the European country is set to downgrade its nuclear capacity additions target to 16 GW, down from the previous 24 GW. We think it is right to do so, as it is better off placing all of its efforts into leveraging the North Sea’s wind resources and shallow depths, but this still means the UK still plans to pour plenty of money into supporting its nuclear industry. It has already committed to invest an additional £1.3 billion to support the construction of two EPR plants at Sizewell C.
Under EDF’s latest scenario, one of the two planned units at Hinkley Point C, situated in Somerset, southwest England, may become operational in 2029, signifying a two-year delay from the previous estimate of 2027. However, adverse conditions could extend the timeline further to 2031, with no estimate provided for the second unit. The project, originally budgeted at £18 billion with a scheduled completion date of 2025, is now facing unprecedented delays, largely attributed to construction disruptions during the Covid-19 pandemic. The revised cost estimates indicate a range between £31 billion and £35 billion based on 2015 prices, contingent on when Hinkley Point C is completed. When adjusted for today’s prices, the cost could potentially surge to £46 billion.
EDF sheds light on the challenges contributing to the delays, including the need for 7,000 substantial design changes mandated by British regulations. The project demands 35% more steel and 25% more concrete than originally planned, reflecting the complexity and evolving regulatory landscape.
On top of this, the UK also wants to expand using SMRs as Great British Nuclear (GBN), responsible for the UK’s new nuclear program, is in the final stages of preparing an invitation for initial tenders aimed at SMR projects. Six companies, including EDF, GE Hitachi, Holtec Britain, NuScale Power, Rolls-Royce SMR, and Westinghouse Electric, were shortlisted in the contest. The tender aims to co-fund technology from design to completion, with contracts expected to be awarded later in the year. GBN plans to select two or three technology providers for the first phase, focusing on demonstrating modularization efficiency. Contracts will be placed for more than one reactor, with the goal of proving the value of modular factories.