EDF has warned that the coronavirus pandemic could cause significant delays at its £ 23 billion Hinkley Point C nuclear power plant.
Talks between the French state-owned electricity company and British officials about possible delays due to the Covid crisis continue.
Hinkley’s launch date has already been postponed to June 2026 due to a six-month delay due to the pandemic. It was originally scheduled to go online in 2025 when it received approval in 2016.
EDF initially raised concerns about possible delays in the start of the pandemic with the Low Carbon Contracts Company (LCCC), the state-owned company that acts as a counterparty to clean energy subsidy contracts.
Under its subsidy agreement, Hinkley Point C is guaranteed a 35-year guarantee of £ 92.50 per MWH. The Somerset site, which is being built by EDF and its Chinese partner CGN, will be the first British nuclear power plant in decades.
However, that 35-year term will be shortened if Hinkley does not earn by May 2029 – which lowers the guaranteed income for EDF. It can be canceled in its entirety if the system is not in operation by October 2033.
EDF said it did not request a specific extension of those deadlines with the LCCC, but in principle it could be eligible for an extension as Covid is a force majeure event – an unforeseen event that affects a company’s ability to meet its contract deadlines.
The company added that it was normal to inform contract holders of a risk at the time of its occurrence in order to protect the right to make claims in the future. It notified the LCCC last March.
It was stressed that the schedule announced in January for the start of Hinkley Point C generation in June 2026 remains unchanged and the project is making good progress.
The LCCC said it was “working actively with Hinkley Point C to assess the impact of the pandemic, as per regulations [its contract]”.
It added, “We anticipate that it may take some time to determine the real impact of Covid-19 on complex construction projects like Hinkley Point as it is not yet known when the Covid-19 restrictions will end. “
EDF is currently negotiating with the government to build a second new plant, Sizewell C in Suffolk.
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