EDF secures additional funding for Hinkley Point C’s new settlement

EDF secured financing of 14 years for the Hinkley Point C nuclear facility in the UK. This is in the event of any delays.

The French energy giant, French Gas, has reached a new agreement that guarantees its financing, even if the company doesn’t begin operations until 2036.

EDF confirmed Am city The project is still on schedule to be completed by 2027, despite a delay of almost 2 years due to the pandemic outbreak and supply chain disruptions.

It is also 45 per cent over budget – initially expected to cost £18 billion, but is now expected to be worth £26 billion.

The old support contract, which expired in 2033 three years ago, still has clauses.

This includes conditions such a shortening of EDF payments if Hinkley Point C doesn’t start generating electricity by May 2029.

If the plant is up and running by that date, EDF gets paid £92.50 per MWh for its own electricity for the first 35 years of its life.

This will be paid for by a tax on consumer bill.

The latter deal instead reflects a renegotiated settlement between the UK and China, with the government paying CGN an exit fee of £100m from the next project – Sisewell C.

The contract was signed while David Cameron’s previous government was seeking financing from Chinese partners.

China was accepted into the UK’s nuclear industry in 2015. Cameron pushed for a so-called golden era of China-UK relations.

CGN was to be a minority shareholder to EDF at Hinkley Point C/Sizewell C and Bradwell B in Essex.

The government is keen to stop China’s involvement in national infrastructure.

Rishi Sunak, the current Prime Minster, stated earlier this week in a statement that the “golden era” was ending.

Hinkley Point C still includes a minority share in CGN, China’s state partner.

The Somerset-based 3.2 gigawatt plant is expected to generate seven percent of the country’s electricity and power six million homes. UK energy mix.