UK Funding subsidy to French firm EDF, for the £26bn Hinkley Point C nuclear plant even if it does not start operating until 2036
EDF has secured 14 years of funding for the UK’s upcoming nuclear plant
Hinkley Point C in case of the risk of further delays. The French energy
giant has agreed a new contract ensuring its funding even if it does not
start operating until 2036.
EDF confirmed to City A.M. the project is still
on course for completion in 2027, following an approximately two year delay
driven by the pandemic and supply chain disruptions. It is also roughly 45
per cent over budget – having initially been projected to cost £18bn, but
now expected to be priced at £26bn.
The new subsidy contract still includes
clauses in the former deal, which was set to expire just three years
earlier in 2033. This includes stipulations such as shortened payments to
EDF if Hinkley Point C fails to start generating power by May 2029.
If the plant is up and running by that date, EDF receives a guaranteed £92.50 per
megawatt hour for its electricity for the first 35 years of its life. The
latest deal instead reflects a renegotiated settlement between the UK and
China, with the Government paying CGN a £100m exit fee from the next
project – Sizewell C.
City AM 1st Dec 2022
https://www.cityam.com/edf-secures-further-funding-for-hinkley-point-c-in-new-settlement/
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