Discussion in 'UK politics, current affairs and news' started by Maggot, Mar 20, 2013.
Hinkley delayed again amidst fund shortage, union challenge and safety fears
Amongst union concerns:
Why are there no other investors interested?
What? You really have to ask that?
It remains unclear to me whether the nuclear industry really survived Fukushima as convincingly as they like to pretend. It can still be the straw that breaks the back of the economic viability of nuclear. I mean its obvious that its always required public subsidy and the avoidance of settling long-term waste issues in order to be in any way viable in the first place, but there are limits to how far that can be pushed and too much additional cost via PR/safety/delays fronts may yet kill these plans off in a lot of countries.
The Nuclear Industry Association just appointed ex-Labour MP Tom Greatrex as its CEO. That's Tom Greatrex, former Shadow Energy Minister and member of the Select Committee on Energy
To back up parts of that article, Nils Pratley also casts severe doubts (at least) on whether Hinckley will go ahead, in his first bit in today's finance column
EDF considers selling €3bn stake in UK nuclear business to help fund reactors
And who's going to buy it? The Tories are insisting on going ahead with this project with a partner who seems to be dancing around trying to avoid bankruptcy?
On the other hand we have this!
David Cameron's enthusiasm for Swansea tidal lagoon 'reducing' - BBC News
Yes, it's more expensive, but it's the first of its kind, future projects of this nature will rapidly fall in price as have other renewable sources of energy and AFAIK most of the infrastructure and jobs will be created in GB as opposed to the wind farm industry and solar.
.... Hinkley Point C has a £92.50/MWh strike price index linked
""Tidal Lagoon has previously said it wanted an agreed price of £168 per megawatt hour for its electricity, but believes it would be able to reduce this figure below £100 if it is allowed to proceed with a number of follow-up lagoons.""
Price now for coal powered £45/MWh
The future ain't cheap
I take it this is a non-starter for EDF now. Perhaps we can expect a Chinese-built reactor.
doesn't matter what d.c. thinks of it now
Or Osbourne, Hinckley and HS 2 might be getting a 'rethink'
Saw that too, murmuring in light of the brexit result. we'll still need power!
EDF shares tanked 9% post brexit ...yesterday .....the company's already struggling to find the hinkley point start up costs and is selling off assets to meet it.....
EDF board member resigns ahead of Hinkley Point nuclear power station vote
EDF has said yes, but now Teresa May wants to review the deal.
Shit, I'm an EDF customer, it's going to cost me €€€€€€€€€.
It's gonna cost everyone. All the major energy companies fix prices against each other allegedly.
As with all this type of major capital intensive investment in infrastructure project - the longer they delay (prevaricate) the more the cost will overrun the budget - just from "normal materials and wage inflation - and "extra" costs will creep in ( you know, another environmental survey, another consultants report, that sort of thing ... )
Made for a rather comical 'Newsnight' interview with Ian Liddell-Grainger; a very passable impression of The Thick of It.
Corporate welfare, big time. More expensive than Trident?
My default assumption is that this :
is nothing more than a PR figleaf.
But! Is there any hope (at all) that Tory cuts-obsession might force them to accept it's the up there amongst the bummest deals ever devised in the history of public spending?
My optimism levels that Hinkley Point might still get cancelled are still ultra low ...
Significant that Molly Scott Cato again raised the question of whether or not EDF's attempt at re-capitalising itself at the expense of UK taxpayers would pass EU competition rules. Maybe some of the board can see this?
I was watching Thick Of It before Newsnight.
You're right, bet he wished he was at home under the duvet instead of being front of camera
There'll be far better examples of media ripping apart the project than this in the Guardian, ('Hinkley's nuclear plant fails all tests -- bar the politics')
But as a quick summing up of the basic nonsense of it, it's worth a look.
Construction News write up:
Government postpones its final approval decision on Hinkley Point C until autumn
28 July, 2016 By Jack Simpson
The much-delayed Hinkley Point C nuclear plant has been thrown into fresh doubt after the UK government postponed contract agreements at the 11th hour.
More from: Government postpones its final approval decision on Hinkley Point C until autumn
The shock announcement came just hours after French energy giant EDF made a final investment decision to go ahead with the £18bn project, paving the way for construction to start.
On Thursday evening, EDF board members had voted in favour of the project by just 10 votes to seven, only for the business and energy secretary Greg Clark to announce shortly afterwards that the government was delaying its final decision on whether to support the scheme.
The government insisted its stance on nuclear hadn’t changed, but that new Cabinet ministers needed more time to look at the project methodically and in greater detail.
However, the announcement came as a shock to EDF, which had planned an event at Hinkley on Friday 29 July to begin signing contracts and celebrate the launch of the project.
Mr Clark said on Thursday evening: “The UK needs a reliable and secure energy supply and the government believes that nuclear energy is an important part of the mix.
“The government will now consider carefully all the component parts of this project and make its decision in the early autumn.”
Just last week, Mr Clark had welcomed EDF’s announcement that it would make a decision at Thursday’s board meeting, saying it would show that the UK was “open for business”.
EDF had earlier stated that the final investment decision had given it authorisation to sign off all contracts and agreements necessary to build the two nuclear reactors.
It added that the decision would now enable the group to mobilise all its significant nuclear engineering skills for the future.
Both of these moves now look likely to be put on hold.
EDF’s final investment decision was initially thought to have ended years of delays to the Somerset project, which has the potential to provide 7 per cent of the UK’s energy when finished and was slated to be fully operational by 2025.
The decision was viewed as a demonstration of confidence in the infrastructure sector and in the UK as a place to invest following uncertainty after the EU referendum outcome.
It had also briefly come as a relief to dozens of contractors that are signed up to carry out more than £2bn of work at the plant.
The plant’s construction would create more than 25,000 jobs across its nine-year build programme.
In 2013 the government and EDF agreed on a strike price, with the French energy giant promising to secure a final investment decision by July 2014.
By March 2014 it emerged that this could not be achieved, with a decision being pushed back to 2015.
More dates for FID came and went, with some questioning whether the project would go ahead at all.
Last October EDF said it expected to make a final investment decision on the plant by the end of the year, but this target was missed.
In March EDF chief financial officer Thomas Piquemal stepped down due to concerns over the impact building Hinkley would have on EDF’s financial position.
Doubts over the project intensified following Brexit, despite the EDF board saying Britain’s vote to leave the EU would have no impact on its decision.
It looks well fugly compared to e.g. Sizewell B, which I've always thought is rather beautiful with it's clean lines and big dome the base of which is above the level of anything else on the site:
That's no moon
There is a lot of insider politics going on ...
You might just suspect that the government / civil service are quietly hoping that if they continually postpone this decision; then EDF will decide that the steadily rising costs (just in materials / wage inflation) are going to mean that the project will be uneconomic and so pull out, meaning that the decision doesn't have to be made.
"The plant’s construction would create more than 25,000 jobs across its nine-year build programme"
20 000 of them in France according to reports.
So where would they propose to get power from if they are not in favour of this project? Theresa May seems to be much less of a renewablist even than Cameron.
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