UK’s Sizewell C nuclear project cost to rise to near $50 billion, FT reports
People walk along the beach on the Suffolk coast as the Sizewell B nuclear power station can be seen on the horizon, near Southwold, Britain, January 31, 2019. REUTERS/Russell Boyce/File Photo Purchase Licensing Rights, opens new tab
Jan 14 (Reuters) – Britain could need as much as 40 billion pounds ($49 billion) for the planned Sizewell C nuclear power plant in southeast England, nearly double the developer EDF’s initial estimate, the Financial Times reported on Tuesday.
New nuclear plants to replace its ageing fleet are key to Britain’s efforts to meet climate targets and boost energy security. Sizewell C would generate enough electricity to power around 6 million homes.
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The FT report cited one senior government figure and two well-placed industry sources whom it said called the revised figure a reasonable assumption in terms of 2025 prices.
A spokesperson for Britain’s Department for Energy Security and Net Zero called the figure “speculative”, adding that “discussions with investors are ongoing and commercially sensitive”.
Sizewell C Joint Managing Directors Julia Pyke and Nigel Cann said in an emailed statement that claims about its costs were inaccurate and “do not reflect the significant savings we are already making because we are building on the achievements at Hinkley Point C”, referring to another UK nuclear project.
EDF declined to comment on the FT report.
Separately, France’s top audit body said on Tuesday that EDF should secure new investors in the project before committing financing to Sizewell C.
A year ago, EDF raised the cost estimate of Hinkley Point C to between 31 billion and 34 billion pounds at 2015 prices, up from 25 billion to 26 billion pounds in a prior estimate.
EDF initially said Sizewell C would be around 20% cheaper than Hinkley C. In 2020, Sizewell C was expected to cost around 20 billion pounds.