Partner EDF says UK project will cost extra $1.9 billion, face 15-month delay
China General Nuclear Power Corp, French energy group EDF’s partner in Britain’s Hinkley Point nuclear power project, said it is too early to jump to conclusions about any possible delays or cost overruns.
In response to EDF’s claim that the project’s costs had risen by 1.5 billion pounds ($1.9 billion) and that it faced a 15-month delay, CGN, China’s largest nuclear operator, said the project is at the early stage of construction.
Based on the company’s previous engineering construction experience, it is too early to say whether the project will cost more money or take more time, the company told China Daily on Thursday.
As a partner, CGN said it has always supported EDF in cost and construction period reduction, while promoting the project with its advantages in nuclear power projects construction.
EDF said on Monday that Hinkley Point could cost an extra 1.5 billion pounds, with an estimated cost up to 19.6 billion pounds following an internal review, and the project could be delayed by up to 15 months, a move that would push the completion date long past 2025.
However, CGN said despite the high cost of the Hinkley project, reasonable returns are expected, providing economic guarantee to its future operation and investors’ recouping their capital costs.
Vincent de Rivaz, outgoing head of EDF Energy, also said that the new estimates and potential delay will have “no impact” on the Hinkley Point contract signed between the company and the UK government, according to Financial Times.
The UK is an ideal investment destination with its sound regulation, market mechanism and power demand, said CGN. “Considering its plan to suspend thermal power between 2025 and 2030 and replace it with clean