Building Britain's Low-Carbon Future

Hinkley Point C Building Britain’s low-carbon future July 2016 Contents Our energy future Contents Hinkley Point C explained 01 Introduction 02 Hinkley Point C achievements 04 Creating excellence through people and technology 10 Underpinning success 16 Realising local benefits 22 Bringing long-term rewards 26 About EDF 30 Contact us 32 Hinkley Point C Explained Hinkley Point C will mark a significant moment in the revitalisation of the UK’s nuclear power industry. EDF Energy’s Hinkley Point C will be the first in a new generation of nuclear power stations in the UK. Capable of generating 3.2GW, it will sit alongside an operating nuclear power station, and one being decommissioned, on the north Somerset coast in the south-west of England. The main power station development The Hinkley Point C project also includes some will include: associated developments in the surrounding area. • Two UK EPR™ nuclear reactor units The main associated developments are an • Two turbine halls accommodation campus next to the main site; an accommodation campus in Bridgwater for • Cooling water infrastructure construction workers; four park and ride facilities • Fuel and waste management facilities to transport workers by bus to the Hinkley Point C including storage development site; a temporary jetty and refurbished • Electricity transmission infrastructure wharf to deliver as much heavy equipment and • Service and ancillary buildings material as possible by sea to reduce pressure on roads; a bypass to the west of the nearby village of • A sea wall Cannington and a series of highway improvement • A public information centre schemes across the local road network. • Landscaping for the construction land. 01 Introduction Our energy future The United Kingdom is facing a critical time in its energy future. We need to face the challenges of decarbonising our energy system, while replacing significant amounts of existing infrastructure that is due to come offline over the next decade. This must be done in an affordable way that delivers a low-carbon transition at the lowest cost for consumers. By 2030 a significant proportion of the UK’s older Hinkley Point C will bring many other benefits too. power stations are expected to close, including It is a huge investment project – comparable in scale all but one of our existing nuclear power stations. to the London 2012 Olympic and Paralympic Games Investments need to be made now in order to – and it will create large-scale employment in UK ensure that we have enough low-carbon electricity manufacturing and construction. It will help re-start from 2030 onwards. It is clear that we need to nuclear construction in the UK, and build an industry replace this lost generating capacity with reliable new that will serve follow-on projects from us and other low-carbon sources if Britain is to secure its energy developers. The UK has an opportunity to become a future and meet its legally binding emissions targets. global leader in new nuclear energy, a prospect that The Committee on Climate Change recommends a is already inspiring a new generation of UK scientists reduction in CO2 intensity of electricity generation of and engineers. over 80% by 2030. The time is right. Successive governments have New nuclear power is a vital part of the future energy recognised the need for nuclear as part of the future mix. Nuclear provides reliable low-carbon power low-carbon energy mix. In polling conducted by that can underpin the energy system*. Electricity is ComRes for EDF Energy in 2016, over two thirds produced when it is needed, day, night, summer and of MPs support the construction of Hinkley Point C winter. It is the only low-carbon option for providing nuclear power station, as one part of the solution baseload power, and will work alongside gas and to the UK’s energy needs. Support for new nuclear renewables, as well as future technologies. from the public is also strong. 54% of the public support Hinkley Point C’s development, and 17% Hinkley Point C will be the first nuclear power are opposed. Nuclear needs to be part of a long- station to be built in the UK for more than 20 years. term solution to meeting the UK’s low-carbon It will have the capacity to generate safe, reliable, energy requirements. low-carbon electricity, enough to power around 6 million homes for its anticipated lifespan of 60 years. “We are very committed as a Government to making sure that we build new nuclear and Hinkley Point will be the first of those.” Rt Hon Amber Rudd MP * Hinkley Point C would have a capacity of 3260MW, with at least Former Secretary of State for Energy and Climate Change a 90% load factor. Over 25TWh per annum would therefore be produced. 1TWh = 1 billion kWh. 25TWh/annum x 60 years Energy and Climate Change Committee evidence session, = 1500 billion kWh. 21 July 2015 02 With a significant proportion of GB generating assets expected to close by 2030, large amounts of new capacity are required… Building the UK’s low-carbon future Existing and under construction generation and contracted plant in Great Britain (including interconnection) 2013-2030 Source: Plant capacities and lifetimes based on EDF Energy view. Peak demand based on National Grid’s Future Energy scenarios Slow Progression 2015. 90 80 Peak demand + 20% 70 Peak demand 60 50 GW 40 30 20 10 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Notes: Chart shows forecast installed capacity of power plants in Great Britain by fuel type, based on EDF Energy Best view as of August 2015. The date when new large-scale baseload generation is needed depends on rate of closure for existing plant. Chart excludes solar PV, due to uncertain availability at peak times. Assumes 8-yr average lifetime extension for AGR fleet. Chart includes interconnection at 3.8GW, de-rated at 50% to reflect availability at peak times. Wind capacities de-rated at 10% to reflect limited ability to provide capacity at peak times. Mothballed capacity assumed to remain closed. Capacity under construction includes ESB’s Carrington CCGT (880MW), SSE’s Ferrybridge CHP (68MW) and ~2.5GW of wind capacity. Peak demand based on National Grid’s Future Energy scenarios Slow Progression 2015. Lighter area denotes reserve capacity to be procured by National Grid. “We don’t want to delay, without reason, the important progress we need to make on new nuclear power in our country.” Rt Hon Ed Miliband MP Former Leader of the Labour Party Hansard, 28 March 2011 03 Keeping the lights on 04 Hinkley Point C achievements Hinkley Point C achievements “Hinkley Point will make a huge contribution, 7% of our total power generation capacity and we have to make sure that project goes ahead.” Rt Hon Philip Hammond MP Chancellor of the Exchequer July 2016 05 Hinkley Point C achievements Hinkley Point C achievements EDF Energy is playing a leading role in helping Britain meet its energy challenge. Hinkley Point C in Somerset would be the first new nuclear station built by a publicly listed company in the UK. It is the first nuclear project in which EDF has been the lead client outside of France. The jigsaw pieces of the nuclear new build project new nuclear power station which is capable of have been pulled together with key milestones providing the UK with secure, reliable, low-carbon reached along the way. electricity at a fair price for consumers. Policy framework Through this ‘Contract for Difference’, a strike price of £92.50/MWh for Hinkley Point C was agreed, reducing to £89.50 if Sizewell C goes The UK policy context ahead. If wholesale prices rise above an agreed There is strong public and political support for new ‘strike price’, consumers will not pay extra. If they nuclear power stations in the UK. In July 2011, the fall below this price the generator will receive a Government designated the first National Policy top-up payment. Customers pay nothing until the Statements for Energy Infrastructure, setting out power station is operational. This guaranteed price the policy framework for a faster, more predictable includes costs for decommissioning in the future and and accountable planning system. The House of means that EDF Group and its partners take on all Commons voted overwhelmingly in favour the construction and operational risk. of the National Policy Statement on Nuclear Power Generation. European milestones Electricity Market Reform, which culminated in the The EPR™ design is one of the first two reactor Energy Act of 2013, confirmed Britain’s commitment designs to pass the ‘justification’ test prior to to provide the right framework to encourage construction. This is a requirement of European law investment in secure, low-carbon electricity supply on basic safety standards. The decision justifying use in the most cost-effective way for customers. of the technology was passed overwhelmingly in a UK parliamentary vote in October 2010. In October 2013, EDF Group and the UK Government agreed on key commercial terms In July 2012 the European Commission confirmed of an investment contract for Hinkley Point C. that the project meets the requirements of the The balanced investment contract was signed Euratom Treaty for a new nuclear power station. to give investors the confidence to invest in a EDF Energy reached another milestone in October 2014 when the European Commission approved the agreements for the planned Hinkley Point C nuclear In June 2013, a vote in Parliament to power station. The Commission found that the rule out nuclear was defeated by 503 Contract for Difference constituted an appropriate votes to 20, giving a majority of 483 and proportionate way for the UK to meet its need MPs supporting nuclear.

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