Hinkley Point C costs rise by £10 billion - with another two-year delay

They say it's expected to total £35 billion to complete 'in 2015 values' - that's up by around £10 billion

Author: Oliver MorganPublished 24th Jan 2024

Bosses at Hinkley Point C say the costs continue to soar - and the timescale once again continues to be pushed back.

They say it's expected to total £35 billion to complete 'in 2015 values' - that's up by around £10 billion.

After re-evaluating the schedule, they've also had to change when it'll be operational by two years - to at least 2029.

It was originally hoped it would start to produce electricity by 2027, with a 'risk' of a further 15-month delay.

Back in 2015, it was also estimated to cost between £25 billion and £26 billion to build.

A review has been finalised and has led to the following re-evaluation of the schedule and costs, through the lens of three scenarios:

  • The first scenario around which the project is organised is targeting becoming operational in 2029. This schedule is based on a target productivity for the electromechanical work, which action plans are being drawn up to achieve
  • A second scenario (base case), which assumes certain risks inherent in the ramp-up of the electromechanical work and the testing schedule do materialise, would see Unit 1 operational in 2030
  • Finally, given the complexity of the project, an unfavourable scenario assuming a further 12-month risk materialises could lead to Unit 1 being operational in 2031

The costs of completing the project are now estimated at between £31 billion and £34 billion in 2015 values.

They say the cost of civil engineering and the longer duration of the electromechanical phase (and its impact on other work) are the two main reasons.

If the risk of an additional delay of 12 months mentioned above in the final scenario does materialise it would result in an estimated additional cost of around £1 billion in 2015 values.

Over recent months, Hinkley Point C project has achieved a series of big milestones:

  • On 15 December 2023, the dome was lifted and installed on Unit 1
  • The detailed design for the next phase of electromechanical (MEH) work was finalised
  • 70% of the equipment to be installed on Unit 1 has been delivered
  • The steam generators have been built and are ready for delivery
  • Testing of the UK instrumentation and control system is underway

The project continues to capitalise on the experience gained from construction of the 4 other EPRs around the world.

Hinkley Point C will be a major source of decarbonised electricity supply for the UK, providing around 7% of national consumption.

Read more: Hinkley Point C served enforcement notices over fire safety

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