The construction of Hinkley Point C, the UK’s first new nuclear power station in over a generation, will now face an additional year of delays, pushing its operational start date to 2030. French utility giant EDF has announced that the delay will incur costs of approximately €2.5 billion, bringing the total estimated expenditure for the project to an eye-watering £35 billion—nearly double the original forecast of £18 billion when the project was approved in 2016.
Extended Timeline and Rising Costs
Originally slated for completion in 2029, the first reactor at the Somerset site will now commence operations a full 13 years after construction began. The chief executive of EDF, Bernard Fontana, described the new timeline as “more realistic,” stating that the projected start date remains consistent with earlier guidance provided in 2024, which indicated operations would begin between 2029 and 2031.
The escalating costs at Hinkley Point C echo the struggles faced by EDF in its other projects, particularly in Flamanville, France, where a similar reactor type encountered extensive delays and budget overruns. As a result, the overall financial implications of Hinkley Point C are expected to be significantly higher when inflation is factored into the equation, as EDF’s estimates are based on 2015 prices.
Implications for UK Energy Supply
Once operational, Hinkley Point C is anticipated to supply approximately 7% of the UK’s electricity needs. This is a vital step in the government’s strategy to reduce reliance on fossil fuels and achieve its legally binding climate targets. Furthermore, the future Sizewell C project in Suffolk is expected to generate enough electricity to power around 6 million homes, further bolstering the UK’s nuclear capabilities.
However, the future of these projects has raised concerns among energy bill payers. Once Hinkley Point C and other nuclear plants are online, households are expected to contribute over £2 billion annually in subsidies to EDF, regardless of future cost fluctuations. The fixed pricing model, established under a government contract, ensures that electricity costs remain stable despite rising expenses.
Financial Strain on EDF
The delay at Hinkley Point C has also contributed to a significant decline in EDF’s financial performance. The company reported full-year earnings of just over €29 billion for 2025, a substantial drop from €36 billion the previous year. This downturn is largely attributed to decreased energy generation across its operations in the UK, France, and Italy, compounded by lower wholesale market prices.
In the UK, EDF’s earnings from electricity generation plummeted by a third to €2.3 billion, primarily due to unplanned outages, particularly at the Hartlepool nuclear plant, coupled with a more demanding maintenance schedule and falling market prices. As EDF prepares for the construction of six new reactors in France and moves forward with the Sizewell C project, the financial pressures from Hinkley Point C loom large.
Why it Matters
The ongoing delays and cost overruns at Hinkley Point C highlight the complexities and challenges involved in large-scale nuclear projects, particularly in the context of the UK’s energy transition. As the nation strives to meet ambitious climate goals and reduce its carbon footprint, the success or failure of such initiatives will play a critical role in shaping the future of energy consumption in Britain. With substantial financial implications for both the company and consumers, the outcome of Hinkley Point C could set a precedent for future nuclear developments in the UK and beyond.
