Update on Hinkley Point C project
The Hinkley Point C project successfully delivered J-0, the completion of the nuclear island “common raft” for its first unit in June 2019, in line with the schedule announced in September 2016.
Following this major milestone a detailed review of the project’s costs, schedule and organisation was performed.
The review has concluded that:
- The next milestone of completing the common raft for Unit 2 in June 2020, which was announced earlier this year, is confirmed ;
- The previously communicated risk of COD delay of unit one and two (of 15 months and nine months respectively) has increased(1)
- The project completion cost(2) is now estimated between £21.5bn and £22.5bn, an increase of £1.9bn to £2.9bn(3) compared to the previous estimate.
The range depends on the effectiveness of action plans to be delivered in partnership with contractors.
Cost increases reflect challenging ground conditions which made earthworks more expensive than anticipated, revised action plan targets and extra costs needed to implement the completed functional design, which has been adapted for a first-of-a-kind application in the UK context.
Under the terms of the Contract for Difference, there is no impact for UK consumers or taxpayers.
EDF’s project rate of return for Hinkley Point C (IRR)(4) is now estimated between 7.6% and 7.8%.
The management of the project remains mobilised to begin generating power from Unit 1 at the end of 2025. To achieve this, operational action plans overseen by the project management are being put in place. These involve the EDF Group's engineering teams in Great Britain and France, buildings and ancillary works contractors, and suppliers of equipment and systems throughout the supply chain.
(1) As previously communicated in July 2017, if this risk were to materialise, it would entail an additional cost of around £0.7bn in 2015 sterling. Under this assumption the IRR for EDF would be lower by 0.3%.
(2) In 2015 sterling, excluding interim interest and excluding forex effect versus the reference exchange rate for the project of 1 sterling = 1.23 euro.
(3) Additional costs net of action plans
(4) EDF equity IRR calculated at the exchange rate 1 sterling = 1.15 euro and including the capped compensation mechanism in place between shareholders.
This press release is certified. Its authenticity can be checked on medias.edf.com
About EDF Group
A key player in energy transition, the EDF Group is an integrated electricity company, active in all areas of the business: generation, transmission, distribution, energy supply and trading, energy services. A global leader in low-carbon energies, the Group has developed a diversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 39.8 million customers(1), 29.7million of which are in France. It generated consolidated sales of €69 billion in 2018. EDF is listed on the Paris Stock Exchange.
(1) The customers were counted at the end of 2018 per delivery site; a customer can have two delivery points: one for electricity and another for gas
About EDF
EDF is driving the transition towards An Electric Britain – a secure, affordable, low-carbon future for everyone. As Britain’s biggest generator of zero carbon electricity, we are investing more than £100 million weekly in Britain’s electricity infrastructure. We supply millions of customers with electricity and help homes and businesses switch to electricity for heating, transport and industrial processes.
We operate five nuclear power stations and more than 35 onshore wind farms and three offshore wind farms. Since 2009, EDF has invested almost £9 billion in the nuclear fleet to improve reliability and extend station lifetimes. The five generating stations currently supply about 12% of the UK’s electricity demand.
EDF is building the UK's nuclear renaissance with the construction of a new nuclear power station at Hinkley Point C. We are a minority investor (12.5%) in and major supplier to a replica plant at Sizewell C in Suffolk. Hinkley Point C and Sizewell C will provide low carbon electricity to meet 14% of UK demand and power around 12 million homes. EDF Group companies Framatome and Arabelle Solutions have a presence in the UK and manufacture critical equipment such as reactor pressure vessels and turbines.
EDF is enabling its 5 million customers, both in business and at home, to choose electric solutions that save cash and carbon, whether it is buying an electric car, generating and storing electricity, selling energy back to the grid or installing solar panels or a heat pump. In 2025, EDF’s Customers business was ranked as one of the Sunday Times’s Best Place to Work.
It is also one of the UK’s leading developers of renewable energy through EDF power solutions UK and Ireland. We have more than 2GW of renewable generation in operation and over 10GW in construction, planning and development across a range of technologies including onshore and offshore wind, solar and battery storage.
We are one of the largest suppliers to British business and a leading supplier of innovative energy solutions that are helping businesses become more energy independent. In addition, the company’s energy services business, Dalkia, one of the UK and Ireland’s largest technical service providers.
For more information
EDF Media Team
24-hour press line: +44 (0)1452 652233
media@edfenergy.com
Related articles
Trials show that Hinkley Point C’s Acoustic Fish Deterrent is Highly Effective
Hinkley Point C takes another step forward as its second nuclear reactor arrives in Somerset
