I have often mentioned the British Hinkley Point C nuclear power project in this blog. The French utility company EDF intends to build two of the new European Pressurized Reactors at the Hinkley Point nuclear power plant in Britain with the help of Chinese investors. Currently, EDF is struggling with financial problems and the final signing of contracts for the project has been repeatedly delayed.
The reason for my focus on this project is that it involves many of the problems that may be encountered in major nuclear power projects. Also, the project and its problems are evolving in real time so there is always more to be reported about the project. Now, with the Brexit that has just been approved by the U.K. voters, some analysts think that the whole Hinkley Point C project may be doomed.
Considering the serious financial problems of EDF and the fact that the Brexit means that the U.K. is no longer part of the European Union, EDF may decide that it has good reasons not to invest in Hinkley Point C. Also, in reaction to the Brexit, the value of the pound sterling has already fallen ten percent and this would raise the projected cost of the project to the British beyond the already bloated current level.
On the other hand, EDF has issued a statement to the effect that the Brexit will have no effect on their commitment to the Hinkley Point C project. The CEO of EDF said that the Brexit would have no effect on the strategy of EDF and its U.K. subsidiary. He claimed that the question of Britain's membership in the E.U. was unconnected to EDF's business strategy so there was no reason for them to change their plans just because the U.K. left the E.U.
With regard to the supporters of the exit from the E.U., the EDF CEO pointed out that a major figure in the campaign for the Brexit had publically stated that the U.K. should continue to work to lower carbon emissions, that nuclear power should be part of the solution to climate change and that the Hinkley Point C project should be completed. In addition, a representative of the U.K. Department for Energy and Climate Change said that " We are fully confident that Hinkley Point C will go ahead."
French labor unions have had their own issues with the Hinkley Point C project. The French unions that would be part of the project have demanded that EDF put off signing the final contract for Hinkley Point C until AREVA, the French reactor construction firm completes a similar EPR reactor project in France. They also want EDF to seriously improve its financial situation before taking on Hinkley Point C. A GT union spokesperson in France says that the uncertainty introduced by the Brexit is another good reason to delay a final decision on Hinkely Point C.
Some analysts think that the Brexit offers all parties involved in the Hinkley Point C a good excuse to withdraw from the troubled project. Regardless of the Brexit, the Hinkley Point C project was a bad idea and all the problems that have arisen have served to reinforce that point.
Artist's concept of Hinkley Point C:
