18 Jan (NucNet): EDF Energy’s chief executive officer is in talks with major investment funds to support the group’s plans to build two EPR units at Sizewell, a project which could cost 20% less than Hinkley Point C.
Simone Rossi, who replaced Vincent De Rivaz last year, said there had been strong appetite from pension funds interested in taking a stake in the Sizewell C project in the east of England.
Mr Rossi used a speech near the Hinkley site in Somerset to call on the government to explore “alternative financing models” to support Sizewell C.
He said EDF Energy and the government should “explore alternative financing models” that can allow institutional investors like pension funds to participate in the financing.
Mr Rossi said that by overhauling the complex financial agreements which support the Hinkley station, EDF could significantly reduce the cost shouldered by energy bill payers.
He said cost reductions give Sizewell C “a unique opportunity to be significantly cheaper than Hinkley Point C and competitive with equivalent alternatives".
EDF is building two EPR units at Hinkley Point C by putting forward its almost £20bn construction costs upfront before later earning £92.50 for every megawatt-hour of electricity it produces once it starts running.
The price will be paid by consumers through their energy bills, but was set via a contract agreed between government ministers and EDF bosses.
Sizewell C would be located north of its sister plant Sizewell B on the Suffolk coast. EDF estimates the two Sizewell C units would take 10 to 12 years to build once it has planning permission, which it will apply for after a third consultation. Feedback from the second consultation, which finished in February 2017, is still being analysed.
In July 2017 EDF revealed costs for Hinkley Point C had risen by £1.5bn to reach £19.6bn, while delays in delivering its reactors could add millions more. The announcement came weeks after public spending watchdog the National Audit Office (NAO) said Hinkley was “risky and expensive”.
