One of the government’s top climate advisers has raised doubts over EDF’s competence to build nuclear plants and called the decision to locate a proposed plant at Sizewell C in Suffolk ridiculous. Lord Deben, who chairs the climate change committee and lives in Suffolk, was accused by EDF of being a nimby after making the comments at a nuclear conference yesterday. EDF, the French energy group, is in talks with the government over Sizewell C and confirmed that it hopes to secure a taxpayer investment by the end of July in the estimated £20 billion project, which could power six million homes. It is already building a plant at Hinkley Point C in Somerset which is now expected to start up 18 months late and up to £8 billion over budget. Lord Deben said: “The nuclear industry has a problem because it doesn’t deliver things on time and it doesn’t deliver them to budget. EDF has still got two nuclear power stations which aren’t finished and the reasons they’re not finished are nothing to do with nuclear. So there’s a real concern with people about how qualified these people are to do these things.” He said the most common argument he heard against nuclear power was that “you can’t trust these people because they never deliver on time and they’re always more expensive”. “That is true of Hinkley: it’s late and it’s much more expensive than it was going to be,” he said.

Times 24th June 2022 read more »

Nuclear project is plunged into crisis as French giant EDF ‘threatens to quit’ Sizewell C. EDF is prepared to walk away from the Sizewell C nuclear project unless the Government makes a key investment commitment in the coming weeks, unions have warned. The French energy giant is growing increasingly frustrated with Whitehall, sources said, and will consider ditching the scheme if there are delays to finalising a crucial milestone called a government investment decision (GID). This would be a firm commitment to the UK taking a stake and cement its support for Sizewell C, which is the only new large-scale nuclear project ministers have said they want to pursue. The decision would pave the way for EDF to approach investors and markets to help fund the development of the Suffolk plant, due to start producing energy in the early 2030s. EDF cannot currently approach possible investors and its internal funding for Sizewell C is understood to run out in a matter of weeks. Although this could be renewed, the cut-off is piling more pressure on the UK. A source said the ‘tone is changing’ in Paris and the company wants to see a decision made before Parliament’s summer recess begins on July 21. A separate planning decision, which also needs to be cleared before EDF can speak to investors, is due on July 8. Chinese state nuclear energy group CGN has been developing Sizewell C with EDF. But it is not expected to continue with the project in the next phase. In a letter to Kwasi Kwarteng seen by the Mail, four of the UK’s biggest unions warned the future of the plant and thousands of jobs are in jeopardy if the deadline is missed. The document sent on Monday to the Business Secretary was signed by Trades Union Congress deputy general secretary Paul Nowak, Unite’s head Sharon Graham, the GMB’s Gary Smith and Prospect’s Mike Clancy. The letter said: ‘We have been made aware through discussions at the European Works Council that EDF Energy’s commitment to this project will not be sustained in the absence of a prompt GID… We sincerely believe that unless this matter is resolved in the next few weeks, the UK’s nuclear future and the jobs and skills of tens of thousands of nuclear workers will be at risk.’

Daily Mail 21st June 2022 read more »

If greenlit and completed – Sizewell will provide reliable, low-carbon power to six million homes and meet around seven per cent of the country’s consumption demand. Sizewell’s Director of Financing Julia Pyke told City A.M. that Sizewell will be a crucial cog in a greener future, and that nuclear power is not in competition with renewable projects. It will also provide energy for the grid and for industry, while also helping to power hydrogen projects. She said: “Some people in the nuclear industry are almost unhelpful in their passion for nuclear, because they present it as an alternative to renewables. It isn’t. It’s part of a system, and that system has to work together.” Earlier this month, Sizewell was selected as a viable candidate for regular asset base model (RAB) funding – meaning that it could receive taxpayer backing during the initial construction phase to ensure the project gets off the ground (a similar approach has been adopted in the building of the Thames Tideway Tunnel). It is expected that EDF will eventually hold a 20 per cent stake in the project, with the Government holding a 20 per cent special share, and the remaining 60 per cent consisting of pensions and infrastructure funds. Currently, Chinese state-backed CGN Group own a 20 per cent holding, but they are expected to be eased out when funding is finalised. Separate to this, planning consent is finally expected next month – following an eight-year process – meaning work on the site could begin as soon as this autumn, with the construction process likely to take 10-12 years. Murkiness over money has been the main source of criticism directed towards Sizewell. The Government has said energy users will collectively save more than £30bn over the Sizewell’s lifetime, and on each new large-scale nuclear power station, compared with existing funding mechanisms. It has claimed the RAB model will add only a few pounds a year to typical household energy bills during the early stages of construction, and on average approximately £1 per month during the full construction phase of the project. However, in its draft reasons for designation, it farcically defined the value for consumers across all scenarios as ‘XX’ – leaving official calculations blank. Pyke conceded she probably wouldn’t have published a table of X’s, but argued the concealment was in the public interest as EDF and the Government push to contain costs. She said: “I think we’re at a point in the project where we’re negotiating the supply chain and we want to negotiate down the build costs as far as we can. We are expecting the cost of the money to be setting competition, and we want those to be driven down as far as they can.”

City AM 20th June 2022 read more »

Concerns have been raised over the reactors at EDF’s Hinkley Point C nuclear power station in Somerset, after cracks were detected in some of the company’s reactors in France. A new report has now warned that the cracks could cause “nuclear accidents” and adds that Hinkley Point C could face similar challenges. The cracks were first detected in October 2021 in an emergency cooling circuit of the first 1300Mw reactor of the Civaux power plant in France. Cracks have since been discovered in three other 1500Mw reactors and in the 1300Mw Penly 1 reactor. According to the report, produced by energy transition experts Global Chance, other plants including Hinkley Point C should be examined in case they will be similarly affected. The report says: “It would also be necessary to examine the possibility that the EPR reactors at Flamanville, Olkiluoto and Taïshan, as well as those under construction at Hinkley Point, might themselves be concerned, insofar as they were designed on the basis of the 1500Mw N4 model.” Co-author of the report Bernard Laponche emphasised the potential impact of the cracks. “If the defects detected on the welds evolve, they can cause a breach in the main reactor cooling system,” he said. “The risk is therefore to generate a nuclear accident situation”. It comes after it was revealed in June last year that the US government had been assessing reports of a leak at the Chinese Taishan power station, with gas escaping after the coating on some of the fuel rods deteriorated. An investigation is ongoing into the cause of the problems with the plant, which is in the southern Chinese province of Guangdong. To date, inspections at Taishan have found “mechanical wear of certain assembly components”, EDF said. It added that several of its long-running reactors have shown a similar pattern and the issues did not raise questions over the Taishan reactor’s design.

New Civil Engineer 16th June 2022 read more »

Constructing Excellence South West’s Somerset Club gathered senior leaders from across the region to put Europe’s largest construction project under the spotlight. In 2016, Somerset became home to Hinkley Point C (HPC), the first in a new generation of nuclear power stations designed to support the UK’s ambition to reach net-zero by 2050. In addition to being one of Britain’s most powerful actions to fight climate change, it’s the biggest construction project in Europe. Creating opportunities for up to 25,000 employees and training 1,000 apprentices, HPC is much more than just a large-scale programme. Since work began, it has brought together specialist knowledge, sector experience and has uncovered numerous key learnings which can help to drive real change in construction.

PBC Today 14th June 2022 read more »

Designation of NNB Generation Company (SZC) Limited: draft reasons. This sets out the Secretary of State’s draft reasons for designating NNB Generation Company (SZC) Ltd, under the Nuclear Energy (Financing) Act 2022. The Nuclear Energy (Financing) Act established the legislative framework for the nuclear Regulated Asset Base (RAB) model to support the design, construction, commissioning, and operation of new nuclear energy projects, creating an additional method for funding future nuclear projects. The first step in potentially allowing a nuclear company to benefit from the RAB model is for the Secretary of State to determine whether to designate the relevant nuclear company in relation to its nuclear project. The Secretary of State may only designate a nuclear company if the 2 criteria laid out in section 2(3) of the Act are met.

BEIS 14th June 2022 read more »

The government has bought an option to take a 20% stake in the Sizewell C nuclear power plant in a move that could ease China’s state nuclear company out of the project. Ministers took a £100m option to invest in Sizewell C’s holding company in January and said on Tuesday it would convert that into equity if the project reaches a final investment decision. The venture on the Suffolk coast is jointly owned by EDF and China General Nuclear Power. The government is understood to be keen to remove CGN from the project amid concerns over China’s involvement in critical UK infrastructure. The business secretary, Kwasi Kwarteng, set out the taxpayer-funded financing model for Sizewell C and future projects on Tuesday. The strategy the government plans to use – a regulated asset base model – is commonplace in infrastructure projects and involves taxpayers taking on risk alongside private investors. The government is attempting to inject urgency into a notoriously slow-moving industry amid a drive to boost Britain’s domestic energy supplies. In April Boris Johnson set out plans to approve up to eight reactors by the end of the decade. A decision on whether to grant Sizewell C planning consent was last month delayed until 8 July. Research by the University of Greenwich Business School seen by the Guardian last month showed the project could cost UK taxpayers more than double government estimates and take five years longer to build.

Guardian 14th June 2022 read more »

The new Sizewell C nuclear power station could receive funding through a new Government scheme that enables companies to charge consumers to cover construction costs. Business and Energy Secretary Kwasi Kwarteng has announced that the £20billion twin reactor will be considered to receive finance through the Regulated Assets Base (RAB) model. Under the initiative, developers can charge a small amount on electricity bills to cover building costs, with the aim to eventually lower bills for customers once the power station is up and running. Infrastructure is the largest financial burden in schemes of this nature, but the RAB model aims to eliminate the need to use loans which build up interest that would have to be passed on to the consumer once the station starts operating. The Government estimates the RAB scheme could save consumers more than £30bn over the project’s lifetime. However, Alison Downes, of campaign group Stop Sizewell C, which is opposed to the plans, said: “It’s outrageous that ministers are hiding the cost to electricity bill payers and the public purse of Sizewell C, while claiming to be transparent. “By redacting the finances, it is impossible to know if the secretary of state’s judgement on value for money is sound.

East Anglian Daily Times 14th June 2022 read more »

The British government has published documents which show “significant progress” towards implementing a Regulated Asset Base (RAB) funding model for new nuclear power projects. It has set out its case for the Sizewell C project to receive funding under the model and launched a consultation on how projects would receive RAB financing.

World Nuclear News 14th June 2022 read more »

The Government has confirmed it will take a 20 per cent stake in EDF’s proposed Sizewell C nuclear power project in Suffolk. It first bought the option in Sizewell C’s holding company in January for £100m, and has since revealed it will convert the investment into an equity stake if the project reaches fruition. The decision is more than just a vote of confidence in the project, as it also eases out Beijing’s influence over the country’s energy infrastructure.

City AM 14th June 2022 read more »

Britain poised to deal blow to China’s role in nuclear projects. Proposed national security powers to allow Government to exclude China from Sizewell C construction phase. The UK is poised to snub China’s role in its nuclear ambitions under plans that will grant ministers the power to intervene in project decisions that pose a risk to national security. Kwasi Kwarteng, the Business Secretary, is pushing ahead with proposals that will grant the Government a “special share” when it takes a 20pc share in the planned Sizewell C station in Suffolk. It is understood that the Government is likely to demand similar national security powers in all future nuclear plants built in Britain under a new funding model. China General Nuclear has provided substantial investment for Britain’s nuclear power stations alongside France’s EDF. But the Government wants to end the use of Chinese state companies through a new funding model which it hopes will incentivise private investors to put forward finance. Documents published by the Government on Tuesday outline that its shareholding powers at Sizewell C will be “complementary” to the takeover rules that allow ministers to block acquisitions from hostile states. The documents said: “The rights attached to the special share are subject to approval by the Secretary of State but will likely be limited to protecting national security interests with respect to the proposed nuclear project.” The Government announced its plans for a special share as it approved Sizewell C for funding under the new Regulated Asset Base (RAB) model for nuclear projects. The RAB model will see consumers start paying indirectly towards the construction of new plants through a small rise in their energy bills.

Telegraph 14th June 2022 read more »

The government has confirmed plans to take a “special share” in the £20 billion Sizewell C nuclear plant, as it moves closer to a deal that would see taxpayers invest 20 per cent in the project and end China’s involvement. Ministers committed £100 million to the Suffolk project in January, which may be converted to equity if the plant goes ahead. They remain in talks with EDF over a deal to fund construction via regulated levies on household energy bills and a bigger, multibillion-pound taxpayer investment. A deal, which ministers hope could come as soon as this summer, is expected to result in China’s CGN losing the minority stake it holds in the project amid security concerns. The government confirmed yesterday that it would have the right to take a special share in to protect national security interests.

Times 15th June 2022 read more »

The government is moving forward with plans to fund new nuclear projects, including Sizewell C, according to documents published yesterday. The documents show significant progress towards implementing a new funding model which will give nuclear projects the financial support they need and attract private investment. The new Regulated Asset Base (RAB) model will see projects receive a regulated payment from electricity suppliers. The Sizewell C project in Suffolk could be the first nuclear project to use this model, subject to the outcome of current negotiations.

New Civil Engineer 15th June 2022 read more »

The government has cleared an EDF subsidiary to receive funds, via its new nuclear financing model, to deliver the proposed Sizewell C plant in Suffolk. The regulated asset base model, which is designed to cut lending costs by allowing developers to collect regulated payments from suppliers while projects are being built, has been used for other major infrastructure projects such as the Thames Tideway ‘super sewer’.

Utility Week 14th June 2022 read more »

Cumbrian organisations have joined forces to highlight how the county’s experience can help with the construction of Sizewell C. Britain’s Energy Coast Business Cluster, Cumbria Chamber of Commerce and the Cumbria Local Enterprise Partnership will link the opportunities at the £20 billion nuclear plant set to be built in Suffolk, with the experienced nuclear supply chain, plus open up opportunities for new entrants to the market. Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, said: “Sizewell C have an established supply chain relationship with Suffolk Chamber of Commerce so it made sense to approach Cumbria Chamber of Commerce to co-ordinate this activity in the north.

Cumbria Crack 15th June 2022 read more »