Hinkley Point C Project UpdateSource: OMX
27 January 2021
HINKLEY POINT C PROJECT UPDATE (1)
Despite being affected by the Covid-19 health crisis, Hinkley Point C has made significant progress in 2020 on site, in the design execution plans and on the manufacturing of equipment.
In this context, a detailed review of schedule and cost has been performed to estimate the impact of the pandemic so far. This review has concluded the following (1):
The start of electricity generation from Unit 1 is now expected in June 2026, compared to end-2025 as initially announced in 2016.
The project completion costs are now estimated in the range of £2015 22 to 23bn (2). As a consequence, the projected rate of return (IRR) for EDF is estimated between 7.1% and 7.2% (3).
The risk of COD delay of Units 1 and 2 is maintained at respectively 15 and 9 months. The realisation of this risk would incur a potential additional cost in the order of £2015 0.7bn. In this case, the IRR for EDF would be reduced by 0.3%.
The project is focused on the objective to lift the Unit 1 dome at the end of 2022.
(1) The information enclosed in this press release assumes the ability to begin a ramp up back to normal site conditions from the second quarter of 2021.
(2) Reminder on the costs previously announced in the Press release of 25 September 2019: £2015 21.5 – 22.5bn.
Costs net of operational action plans, in 2015 sterling, excluding interim interest and excluding forex effect versus the reference exchange rate for the project of 1 sterling = 1.23 euro.
Costs are calculated by deflating estimated costs in nominal terms using the British Construction OPI for All New Work index.
(3) EDF equity IRR calculated at the exchange rate of 1 sterling = 1.13 euro and including the capped compensation mechanism in place between the project’s shareholders. Previous IRR of 7.6% - 7.8% was based on an exchange rate of 1 sterling = 1.15 euro.
This press release is certified. Its authenticity can be checked on medias.edf.com
A key player in energy transition, the EDF Group is an integrated electricity company, active in all areas of the business: genera-tion, transmission, distribution, energy supply and trading, energy services. A global leader in low-carbon energies, the Group has developed a diversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 38.9 million customers(1), 28.8 million of which are in France. It generated consolidated sales of €71 billion in 2019. EDF is listed on the Paris Stock Exchange.
(1) The customers were counted at the end of 2019 per delivery site; a customer can have two delivery points: one for electricity and another for gas.
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