Charles Hendry told delegates at an event in London that the consequences for nuclear would be “very challenging” if EDF didn’t press ahead with the Hinkley project.
“It doesn’t mean that other companies couldn’t come forward but if state owned entities couldn’t make it happen then what are the prospects for private companies,” he added. “If nuclear was found to be unaffordable to invest in the United Kingdom, there a whopping great big hole in energy policy.”
Hendry said he thought Hinkley was likely to be built after the British and French governments re-affirmed their commitment to the project last week: “The battle between whether this is an economic or political decision has been won by the politicians.”
Chief executive and co-founder of consultancy Quercus Investment Partners, Diego Biasi, questioned why the government is still keen to build a nuclear plant when other countries, such as Germany, are phasing nuclear out.
He argued that a combination of renewable energy and new energy storage technology will make nuclear plants redundant by the time Hinkley is built.
However, former chair of World Energy Council John Baker said baseload generation remains “essential”. “You need the base power to keep the whole system stable,” he said. “The grid isn’t just a passive thing. It is a dynamic system. … For baseload generation nuclear is the best bet, even if the Hinkley Point reactor isn’t.”
Baker said he did have “grave concerns” over the European Pressurised Reactor (EPR) planned for Hinkley, describing it as the “most complex” power station in the world. He said the rest of the world is moving towards simpler designs, as layering one safety system on top of another “isn’t actually any safer”.
He concluded: “The reason EDF is struggling … the complexities of the two plants they’ve already got under construction are defeating the best brains for construction.”
Earlier this week EDF’s finance chief Thomas Piquemal left the company, reportedly because of concerns over Hinkley. Sources claimed he met with chief executive Jean-Bernard Lévy several times over the preceding week to argue for a final investment decision to be delayed by three years.
Former Hinkley project director Chris Bakken has denied that he left the company in February because he lacked “full faith” in the plant.