EDF’s UK Nuclear Project Cost Swells, Pushing Start Back Further

Electricite de France's flagship project, the Hinkley Point C nuclear plant, will cost more than expected and take longer to complete due to supply chain disruptions and Russia's invasion of Ukraine.

The French energy giant said in a statement that it now expects the cost of the two reactor project to be between 25 billion and 26 billion dollars. That's up from a previous range of 22 to 23 billion.

It is the fourth budget increase in five years. The first reactor will be able to produce power by June of 2027.

The people, resources and supply chain have been severely constrained.

The government wants to boost the country's energy independence and reduce its reliance on fossil fuels, and the two reactor are blazing a trail for that. While rising costs of metals, cement and labor are affecting numerous industries, the revised plan may revive a controversy over how expensive the technology is and whether further holdups are inevitable.

The UK government is in talks with the French company to arrange financing for a second UK nuclear plant that would use the same design. Delays and cost overruns may put off investors at a crucial point in negotiations for the proposed Sizewell project. Reactors compete for investor capital with renewable energy.

Nuclear Renaissance will be different this time around according to the U.K.

When the contract was signed with the U.K., it was estimated that the budget would be 18 billion dollars. China General Nuclear Power Corp owns the rest of the stake in the French utility. The French company may have to take on a larger part of the project because of the cost overruns.