5 Apr (NucNet): The proposed Sizewell C nuclear power station in Suffolk, England, may not be feasible, although discussions are continuing with the UK government about possible funding options, EDF Energy’s UK chief executive told The Times.
Simone Rossi told the newspaper that the company needs assurances from government this year that a “viable funding model exists” for the construction of two EPR units at Sizewell C. If EDF Energy believes the project is not feasible, it may stop its involvement in the project, he said.
EDF Energy is in talks with the government over a funding model for the Suffolk nuclear power plant which would reduce costs for consumers.
Earlier this year Mr Rossi said there had been strong appetite from pension funds interested in taking a stake in the Sizewell C project.
Mr Rossi told The Times: “This is the year where we need to understand whether this whole thing is really feasible or not.”
He added: “If we were to conclude that maybe it’s not feasible, then at that point maybe we say we are not in a position to continue the project.”
Mr Rossi said expected cost savings for Sizewell C could disappear if there is a “significant delay” between work on it and Hinkley Point C.
EDF Energy has said it expects construction costs for Sizewell C to be roughly 20% less than for the Hinkley Point C station, which is costing almost £20bn. This is because the new plant would almost be a replica of Hinkley Point C, and because electricity grid connections are already in place at the Sizewell C site.
EDF is building two EPR units at Hinkley Point C by putting forward its 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. It was set via a contract agreed between government ministers and EDF bosses.
Sizewell C would be 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.
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 said Hinkley was “risky and expensive”.
