EDF said in October that its £18 billion Hinkley Point new nuclear project would go ahead “within weeks” following a six billion pound deal with China to build the first new reactors in a generation.
However, according to French newspaper Les Echos, a final decision due to take place at an EDF board meeting today has been postponed to 16 February at the earliest, because of “difficulties with the financing of the project”.
A spokeswoman for EDF said while a board meeting was planned for today, no date for a final investment decision had yet been set. The reports contradict EDF chief executive Jean-Bernard Levy, who reportedly said “two nuclear reactors that EDF plans to build at Hinkley Point will be launched very soon”.
The construction consortium, in which EDF has a 66.5 per cent stake, plans to invest £18 billion in the project if it goes ahead. However the European Commission has estimated that the actual cost of construction will be £24.5 billion; more than the entire market value of the French electricity supplier.
The company’s position has been made more difficult by cost overruns and delays at its existing new build nuclear projects at Flamanville in France and Olkiluoto in Finland. Concerns have been raised over the EPR technology being used in both of the plants as well as the designs for Hinkley.
Falling wholesale power prices in France, difficulties in absorbing Areva NP and an ageing French nuclear fleet in need of refurbishment are all said to be adding to EDF’s troubles.