An article researched and written by World Nuclear News says EDF now estimates that the cost of the Hinkley Point C nuclear power plant project will be £19.6 billion, up from its earlier estimate of £18.1 billion.

The target date for first operation of Unit 1 remains the end of 2025. The company announced in its 2016 Annual Financial Report that it would carry out a full review of the costs and schedule of the Hinkley Point C project.

In a statement on 3 July, EDF said its latest estimate “includes successful operational action plans, in partnership with suppliers”, adding that the increase in costs “results mainly from a better understanding of the design adapted to the requirements of the British regulators, the volume and sequencing of work on site and the gradual implementation of supplier contracts”.

The article says EDF’s projected rate of return on the project is now around 8.5%, compared with the initial estimate of about 9%.

EDF (www.edf.fr) said the pouring of the first safety-related concrete for Unit 1 will be in mid-2019, adding that this assumes the final design, “which is on a tight schedule”, is completed by the end of next year.

EDF said the risk of “deferral of delivery is estimated at 15 months for Unit 1 and nine months for Unit 2”. This risk, it said, would entail an additional potential cost of some £700 million.

Under a deal agreed in October 2015, China General Nuclear (CGN) will take a 33.5% stake in EDF Energy’s project to construct Hinkley Point C.

Consisting of two Areva-designed European Pressurised Reactors (EPRs), it will be the first new nuclear power station to be built in the UK in almost 20 years and will provide about 7% of the country’s electricity.

The final agreements enabling construction of two EPRs at Hinkley Point C to proceed were signed on 29 September last year by the UK Government, EDF and CGN.