The British National Audit Office (NAO) has reviewed the government's decision to commission the Hinkley Point nuclear power project and labelled it as a "high cost and risky deal". In particular, it pointed out that the government and the Department for Business, Energy and Industrial Strategy (BEIS) did not look at alternative ways of funding the power plant in order to get the best deal possible.
It estimates the cost for the plant construction at £18bn (or €20.5bn, as of 2016), while the price (in 2012 prices) to be paid
to NNB Generation Company (HPC) Limited (Hinkley Point C’s operator) will reach £92.5/MWh (€105/MWh) for the first 35 years of the project. According to the NAO, about 7% of the UK electricity requirement will be met by the project in the mid-2020s. New cash and electricity payments could be needed, which means the project overall cost may reach £30bn (€34bn).
The NAO expects the project to add £15 (€17) to the annual domestic electricity bills up to 2030 and burden consumers with unsure strategic and economic benefits. If the project is delayed by three more years, the annual electricity bill value will increase by £21-24 (€24-27).
The NAO has also put forward other figures and estimate the costs of Hinkley Point C's decommissioning at £7.3bn (€8.3bn), while the net project cash flows by the end of the project in 2085 are expected to reach £79.7bn (€90.6bn).
Searching for proven generation costs?
Then CAPEX & LCOE is the database you need. The module provides exclusive insights on both Capital Expenditure and Levelised Cost of Electricity.
Make informed decisions in terms of which technologies to invest in and where. In just a few clicks, access unique, premium data on both thermal and renewable power generation costs by technology and by country. Put our detailed, reliable information to use and benchmark your project.