Nuclear: In United Kingdom, government and EDF agree to develop new EPR

The British authorities will finance this central project up to 800 million euros in eastern England. The Chinese are dismissed.

by Eric Albert (London, Correspondence)

Last-minute delays had accumulated for two months across the Channel, and the political instability which prevailed in the country did not help. However, an agreement seems to have been found between the British government and EDF to develop the project of a new nuclear power plant.

On the occasion of the presentation of the state budget, Thursday, November 17, Jeremy Hunt, the Chancellor of the Echiquier, announced the official decision to set up the capital of Sizewell C, an EPR type project in East of England, which must be built and managed by the French electrician.

“The government will move forward for Sizewell C, said Hunt. Subject to the latest approvals, contracts for initial investment will be signed with the various parties, including EDF, in the weeks at Coming. “The French electrician says he is” delighted “of this announcement. 2>

gigantic site

This agreement is not yet a green light to build a new EPR. It lacks an essential element: funding – nearly 25 billion euros. It is for the moment the implementation of the central development project, in which EDF and the British State will be in partnership at 50 % each.

This will allow them to rule out the Chinese from CGN, who have been involved in Sizewell C for several years, and to bring new liquidity in order to finance the cost of development: the British government will contribute to 700 million pounds sterling (800 million euros).

EDF is already the operator of the eight British nuclear power plants in activity. It also builds, in the west of England, Hinkley Point C, two new EPRs with a total capacity of 3.2 gigawatts, the first tranche of which must open in 2026. This gigantic project, on which more than 7,500 workers work every day, was launched in 2016, triggering a lively controversy.

At the time, the British government had refused to pay the slightest penny and the French electrician had decided to finance the project on its equity. However, the cost was prohibitive: in January 2021, it was revised upwards at “22 billion-23 billion pounds” (this is a price calculated in currencies of 2015; corrected for inflation, that is today close to 28 billion-29 billion pounds). This decision had caused the resignation of the EDF financial director, who believed that the risk was too important.

To limit the breakage, the tricolor company had rested on two pillars. On the one hand, it had signed an extraordinary contract with the British state, which guaranteed it the sale price of electricity to 92.50 pounds from the megawatt hour (at the time double the price of the market) for thirty -five years. On the other hand, she had increased to CGN capital, a large Chinese nuclear company, which financed a third of Hinkley Point C. At the same time, CGN had taken 20 % of the Sizewell C development project, and had received The promise to be able to build a power plant on its own technology in Bradwell, in northern England.

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/Media reports.