EDF and Chinese partner to get '£160bn from Hinkley'

EDF and China General Nuclear could get up to £160bn in revenue over 35 years for Hinkley Point C once it’s up and running, according to the Financial Times.

Analysis commissioned by the FT found that with Hinkley’s strike price of £92.50/MWh guaranteed by the government for 35 years, EDF and its partner China General Nuclear (CGN) are set to earn between £100-160bn in revenue.

EDF has a 66.5% stake in the project with CGN taking the remaining 33.5% stake.

Analysts estimated that EDF and CGN could earn £102bn between them over the 35-year period if Hinkley ran at 90% capacity for 90% of the time, with an assumed inflation rate of 1%.

Other analysts predicted the two firms could receive up to £160bn if the power plant operated closer to full power for 90% of the time assuming a 2% inflation rate.

It comes after prime minister Theresa May told journalists at the G20 summit in Hangzhou, China that she would make a decision on the proposed power plant’s fate this month.

May said: “I’m going to be looking at all the evidence around this issue. The way I look at this, I don’t just take an instant decision… I have been very clear that I will be doing that and taking a decision sometime this month.”

The government said it would delay giving its final approval to Hinkley Point C in July, just minutes after EDF’s board announced it had made its long-awaited decision to approve funding for the project.

Chinese president Xi Jinping also told journalists at the summit he is willing to “show patience” with the UK government, in reference to the delays over Hinkley.

According to reports, May and president Xi held talks over a “bilateral trade agreement” but the specifics of the Hinkley deal were not discussed.