U.K. Backs Giant Nuclear Plant, Squeezing Out China

The government wants to boost the amount of electricity generated from nuclear power and other sources like wind in order to reduce dependence on natural gas, now the largest source of power, whose volatility has pushed up electricity prices. However, construction has not yet begun at Sizewell C, and it will require a decade or more to make a difference.

The government’s plan is to attract capital to the nuclear industry from asset management firms and other financial market players. To make the investment attractive, the government would allow developers to recover costs from bill payers as the projects progressed.

The government portrayed Sizewell C as the first of a “pipeline” of new nuclear plants that would “enable the delivery of clean, safe electricity over the decades to come.” The plant would provide enough power for about six million homes, the government said.

Analysts, though, said the announcement on Tuesday might be only a step on what could be a long and fraught journey. The recent experience of building nuclear plants in Western Europe has been plagued by long delays and cost overruns. Hinkley Point C, similar in design to Sizewell C and being constructed by EDF, is years behind schedule.

“Expect severe delays, significant cost overruns and a serious lack of skilled workers,” said Franck Gbaguidi, a senior analyst at Eurasia Group, a political risk firm.

EDF has said it would leverage that experience and the trained work force at Hinkley Point to reduce costs at Sizewell C. Mr. Gbaguidi, however, said EDF might struggle because it was “currently overwhelmed with existing and planned projects in France.”

Indeed, major problems at EDF’s nuclear stations in France have reduced their power output at a time when they are needed to buffer the effects of Russia’s cutoff of gas to Europe.

Article source: https://www.nytimes.com/2022/11/29/business/uk-nuclear-plant-china.html