Hinkley Point C Project Update

  PRESS RELEASE27 January 2021       HINKLEY POINT C PROJECT UPDATE(1)Despite being affected by the Covid-19 health crisis, Hinkley Point C has made significant progress in 2020 on site, in the design execution plans and on the manufacturing of equipment.In this context, a detailed review of schedule and cost has been performed to estimate the impact of the pandemic so far. This review has concluded the following(1) :The start of electricity generation from...

PARIS, 27/01/2021 (informazione.news - comunicati stampa - energia)

HINKLEY POINT C PROJECT UPDATE

Despite being affected by the Covid-19 health crisis, Hinkley Point C has made significant progress in 2020 on site, in the design execution plans and on the manufacturing of equipment.

In this context, a detailed review of schedule and cost has been performed to estimate the impact of the pandemic so far. This review has concluded the following :

The start of electricity generation from Unit 1 is now expected in June 2026, compared to end-2025 as initially announced in 2016.

The project completion costs are now estimated in the range of £ 22 to 23bn . As a consequence, the projected rate of return (IRR) for EDF is estimated between 7.1% and 7.2% .

The risk of COD delay of Units 1 and 2 is maintained at respectively 15 and 9 months. The realisation of this risk would incur a potential additional cost in the order of £ 0.7bn. In this case, the IRR for EDF would be reduced by 0.3%.

The project is focused on the objective to lift the Unit 1 dome at the end of 2022.

(1)   The information enclosed in this press release assumes the ability to begin a ramp up back to normal site conditions from the second quarter of 2021.
(2)   Reminder on the costs previously announced in the Press release of 25 September 2019: £ 21.5 – 22.5bn.
      Costs net of operational action plans, in 2015 sterling, excluding interim interest and excluding forex effect versus the reference exchange rate for the project of 1 sterling = 1.23 euro.
      Costs are calculated by deflating estimated costs in nominal terms using the British Construction OPI for All New Work index.
(3)   EDF equity IRR calculated at the exchange rate of 1 sterling = 1.13 euro and including the capped compensation mechanism in place between the project's shareholders. Previous IRR of 7.6% - 7.8% was based on an exchange rate of 1 sterling = 1.15 euro. 

This press release is certified. Its authenticity can be checked on medias.edf.com

                                         
A key player in energy transition, the EDF Group is an integrated electricity company, active in all areas of the business: genera-tion, transmission, distribution, energy supply and trading, energy services. A global leader in low-carbon energies, the Group has developed a diversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 38.9 million customers , 28.8 million of which are in France. It generated consolidated sales of €71 billion in 2019. EDF is listed on the Paris Stock Exchange.
(1) The customers were counted at the end of 2019 per delivery site; a customer can have two delivery points: one for electricity and another for gas.

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