Peter Dutton’s back-of-the-envelope nuclear power plan has suffered another major hit, with new reports showing the expected cost of the newest planned UK nuclear power plant surging so much its builder has been told to bring in new investors.
The planned Sizewell C nuclear plant in Suffolk, to be built by French nuclear giant EDF in cooperation with the UK government, was costed at £20 billion in 2020. According to the Financial Times, the cost is now expected to double to £40 billion, or $79 billion.
The dramatic increase in costs is based on EDF’s experience with Hinkley Point C, currently being built in Somerset, which was supposed to commence operations this year but will not start until at least 2029. It was initially costed at £18 billion but is now expected to cost up to £46bn, or $90 billion.
So dramatic are the cost blowouts that EDF and the UK government have been searching, with limited success, for other investors to join them in funding Sizewell.
Meanwhile across the Channel, France’s national audit body has warned that the task of building six new nuclear reactors in France — similar in scale to Peter Dutton’s vague plan for seven reactors of various kinds around Australia — is not currently achievable.
The French government announced the plan in 2022, based on France’s long-established nuclear power industry and its state-owned nuclear power multinational EDF, with an initial estimate of €51.7 billion. That was revised up to €67.4 billion ($112 billion) in 2023. It is still unclear how the project will be financed, with little commercial interest prompting the French government to consider an interest-free loan to EDF.
The cour de comptes also noted the “mediocre profitability” of EDF’s notorious Flamanville nuclear plant, which began producing electricity last year a decade late and 300% over budget. It warned EDF’s exposure to Hinckley was so risky that it should sell part of its stake to other investors before embarking on the construction program for French reactors. The entire program was at risk of failure due to financial problems, the auditors said.
That France, where nuclear power has operated for nearly 70 years, and where EDF operates 18 nuclear power plants, is struggling to fund a program of a similar scale to that proposed by Dutton illustrates the vast credibility gap — one mostly unexplored by a supine mainstream media — attaching to Dutton’s claims that Australia, without an extant nuclear power industry, could construct reactors inside a decade for $263 billion. Based on the European experience — Western countries that are democratic and have independent courts and the rule of law, rather than tinpot sheikhdoms like the United Arab Emirates — the number is patently absurd.
Backed by nonsensical apples-and-oranges modelling by a Liberal-linked consulting firm that even right-wing economists kicked down, the Coalition’s nuclear shambles is bad policy advanced in bad faith by people with no interest in having their ideas tested against the evidence. The evidence from overseas is that nuclear power plants run decades over schedule and suffer budget blowouts in the tens of billions — and that’s in countries with established nuclear power industries and which don’t suffer the kind of routine 20%+ infrastructure cost blowouts incurred by building even simple roads and bridges in Australia.
But good luck finding any of that out from Australian journalists.
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