Hinckley Point C delays raise 'big questions' about nuclear power, says RWE chief

Construction of the Somerset nuclear power plant continues after a series of setbacks. Photo: DANIEL LEAL

Cost overruns and delays at Hinckley Point C raises 'big questions' about investment in new nuclear power projects, warned the head of one of Britain's largest electricity producers.

Markus Krebber, chief executive of RWE , expressed doubts about whether investors would and should support new nuclear power plants as part of the transition to net zero.

He said in an interview with the Australian Financial Review: “I would have a big question if building new ones is really a good strategy because if you look at cost overruns and delays, I think it’s a purely renewable energy system.” , including the necessary

His comments were made in connection with the fact that the British flagship nuclear power plant Hinkley Point C is still under construction after a series of failures.

p>The Somerset project received government approval in 2016 and was originally due to open in 2025 at a cost of £18bn.

However, the 3.2 gigawatt generator is now expected to open in June 2027 and will cost from 25 billion pounds. £26 billion, equivalent to £32 billion in today's inflation.

The project, designed to generate enough energy to power 6 million homes, is being built by French company EDF, which owns Britain's aging fleet of nuclear power plants.

Mr Krebber cited delays in the project as the reason why it is difficult to find «anyone in the Western world» who will invest in building large new nuclear power plants without government support.

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He said, «You've seen delays and cost overruns in the US, Finland, UK and France.»

Nuclear power is seen as vital to the UK's energy security following the turmoil in global oil and gas markets following the start of the war in Ukraine. Nuclear power provides a reliable source of electricity and has helped shield France from the worst effects of rising oil and gas prices.

Ministers have called for nuclear power to supply 25% of the UK's electricity needs by 2050, ending her dependencies. for coal and gas.

However, Hinckley Point C is the only major nuclear project to begin construction in the past two decades.

The government has had to struggle to convince skeptical pension funds and asset managers to invest in the planned Sizewell C nuclear power plant in Suffolk, worth £20bn.

She has invested nearly £1bn in the project and shares equal ownership with EDF after buying out the state-owned Chinese nuclear power plant. the company last year due to national security concerns.

RWE was previously one of Germany's largest nuclear power producers, but was forced to shut down production as part of the country's long phase-out of nuclear power. It shut down its last nuclear power plant in April.

The Hessian company, now the world's second largest producer of offshore wind power, provides about 15% of the UK's electricity needs.