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A final investment deal for the Hinkley Point new nuclear project could be delayed to as late as October this year due to negotiations between EDF and its Chinese project partner.
Late last month energy secretary Ed Davey said a final investment decision on the £16 billion nuclear power station is expected within “weeks, or months”. But a report from The Times this weekend suggests that a deal can only be expected by September or October.
The report says the Chinese companies are refusing to invest unless the French government promises to bail out reactor developer Areva, if necessary, and cover cost overruns. The article claims the French government will agree, but that working out a financial agreement for Areva will delay the final deal.
The nuclear plant, the first to be built in a generation, is expected to begin operations in 2023 and forms a key part of the government’s plans to secure low carbon power supply in the coming decades as older plant close.
The government and EDF Energy have agreed a strike price of £92.50/MWh for the 3.2GW plant, which will fall to £89.50/MWh if they make a final investment decision to go ahead with another power station at Sizewell.
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