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EDF could build second nuclear plant 'for 20% less than Hinkley Point' EDF could build second nuclear plant 'for 20% less than Hinkley Point'
(about 7 hours later)
Company claims a plant at Sizewell in Suffolk would be £4bn cheaper than £20bn projectCompany claims a plant at Sizewell in Suffolk would be £4bn cheaper than £20bn project
Adam VaughanAdam Vaughan
Wed 17 Jan 2018 11.30 GMTWed 17 Jan 2018 11.30 GMT
Last modified on Wed 17 Jan 2018 16.06 GMT Last modified on Wed 17 Jan 2018 22.01 GMT
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EDF Energy has claimed it could build a second new nuclear power station in Britain that would be 20% cheaper than the £20bn Hinkley Point C project under construction in Somerset.EDF Energy has claimed it could build a second new nuclear power station in Britain that would be 20% cheaper than the £20bn Hinkley Point C project under construction in Somerset.
The French state-owned company said a new plant at Sizewell on the Suffolk coast would be cheaper because of replication in construction techniques, existing grid connections and the exploration of new finance models.The French state-owned company said a new plant at Sizewell on the Suffolk coast would be cheaper because of replication in construction techniques, existing grid connections and the exploration of new finance models.
In his first major public speech, Simone Rossi, EDF’s new chief executive, said Sizewell C could be significantly cheaper than Hinkley Point C and competitive with alternatives.In his first major public speech, Simone Rossi, EDF’s new chief executive, said Sizewell C could be significantly cheaper than Hinkley Point C and competitive with alternatives.
The Italian executive said he was confident he could deliver Hinkley on time, with the first power to be generated by 2025. Other projects in France and Finland with the same reactor design have run years over schedule, and EDF had already warned that the Somerset plan could be 18 months late.The Italian executive said he was confident he could deliver Hinkley on time, with the first power to be generated by 2025. Other projects in France and Finland with the same reactor design have run years over schedule, and EDF had already warned that the Somerset plan could be 18 months late.
Hinkley is the first nuclear power station to be built in the UK in a generation but was labelled “expensive and risky” by the government’s spending watchdog last year.Hinkley is the first nuclear power station to be built in the UK in a generation but was labelled “expensive and risky” by the government’s spending watchdog last year.
Rossi said reducing the cost of capital could make a significant difference to the price for consumers. For Hinkley, EDF was awarded a guaranteed price for power at about twice the wholesale price of electricity.Rossi said reducing the cost of capital could make a significant difference to the price for consumers. For Hinkley, EDF was awarded a guaranteed price for power at about twice the wholesale price of electricity.
One model the heavily indebted company is examining for a £16bn plant at Sizewell is the approach taken by Thames Water for London’s £4.2bn super-sewer, where the project is taken off the company’s balance sheet by creating a new company that other investors pour equity into.One model the heavily indebted company is examining for a £16bn plant at Sizewell is the approach taken by Thames Water for London’s £4.2bn super-sewer, where the project is taken off the company’s balance sheet by creating a new company that other investors pour equity into.
“With government, we started discussing and exploring this avenue that would make investment possible into a nuclear power station by third investors, which would be a novelty,” said Rossi. He added it would be irresponsible not to explore new financing models.“With government, we started discussing and exploring this avenue that would make investment possible into a nuclear power station by third investors, which would be a novelty,” said Rossi. He added it would be irresponsible not to explore new financing models.
Record low subsidy prices for alternatives such as offshore windfarms have also put nuclear advocates on the defensive, with industry and ministers attacking “simplistic” cost comparisons between nuclear and renewables.Record low subsidy prices for alternatives such as offshore windfarms have also put nuclear advocates on the defensive, with industry and ministers attacking “simplistic” cost comparisons between nuclear and renewables.
Rossi used his speech to talk down the role other technologies could play in providing the low-carbon power the UK will need from the late 2020s.Rossi used his speech to talk down the role other technologies could play in providing the low-carbon power the UK will need from the late 2020s.
Energy efficiency was important but would not be enough to offset a growth in demand as other sectors such as cars turn to electricity, he said. Gas was useful but not green enough to meet the UK’s climate targets, he added.Energy efficiency was important but would not be enough to offset a growth in demand as other sectors such as cars turn to electricity, he said. Gas was useful but not green enough to meet the UK’s climate targets, he added.
Wind and solar power were welcome but both were limited in the role they could play, Rossi claimed.Wind and solar power were welcome but both were limited in the role they could play, Rossi claimed.
He said Britain had “world class wind” and that the reductions in windfarm costs were good news.He said Britain had “world class wind” and that the reductions in windfarm costs were good news.
On solar, he joked: “As an Italian, I know that Britain is not one of the sunniest places on the planet.” Large-scale battery storage, which EDF was working on in the UK, was useful but run flat in half an hour, he said.On solar, he joked: “As an Italian, I know that Britain is not one of the sunniest places on the planet.” Large-scale battery storage, which EDF was working on in the UK, was useful but run flat in half an hour, he said.
Despite the criticisms of competing technologies, he said Britain should install as much renewable energy as possible.Despite the criticisms of competing technologies, he said Britain should install as much renewable energy as possible.
“To summarise, the recipe is to use as much wind as you can, sprinkle some sun, some batteries, some gas around it, and put on a base of nuclear and put it in the oven,” he said.“To summarise, the recipe is to use as much wind as you can, sprinkle some sun, some batteries, some gas around it, and put on a base of nuclear and put it in the oven,” he said.
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Hinkley Point CHinkley Point C
Energy industryEnergy industry
EnergyEnergy
(Environment)(Environment)
EDF EnergyEDF Energy
Nuclear powerNuclear power
EnergyEnergy
(Technology)(Technology)
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