EDF has claimed it can slash nuclear costs by “copying and pasting” parts of the design for the Hinkley Point C power station currently under construction in Somerset, the Times has reported.
Hinkley is currently projected to cost £19.6 billion to build, with the price tag rising to as much as £20.3 billion if the completion date is delayed from 2025 to 2027.
EDF is developing plans for a sister plant at the Sizewell C site in Suffolk and, according to the Times, the company thinks this “second of a kind” power station could be built for £5 billion less than the original.
The firm believes it can eliminate the majority of the £2 billion pre-construction costs incurred on Hinkley, the paper reported, and billions more could be saved by re-using contractors and equipment which have already undergone the necessary certification and training.
The cumulative effect would be a 20 to 25 per cent reduction in overall costs, meaning Sizewell C would be viable with a Contracts for Difference strike price of just £70/MWh compared to £92.50/MWh for Hinkley Point C (falling to £89.50/MWh if Sizewell goes ahead).
EDF believes costs could be cut even further if developers were not forced to bear all of the construction risks, as is the case with Hinkley.
A report by the National Audit Office published over the summer criticised the government for failing to properly examine alternative financing models, which would have exposed taxpayers to these risks but could have provided “better value for money for electricity consumers”. In a report released in November, the Public Accounts Committee urged ministers not to repeat the mistake for future projects.
In partnership with China General Nuclear Power Corporation (CGN), EDF is proposing to build three nuclear power stations in Britain. Under the plans, Hinkley Point C and Sizewell C will both use the European Pressurised Reactor developed by EDF and its subsidiary Areva NP, whilst Bradwell B will use CGN’s UK HPR1000 reactor.
EDF declined to comment.