Infrastructure expert John Armitt criticises 鈥榙isappointing鈥 setbacks to Hinkley Point C and Swansea Bay
Fresh delays to big energy projects including the 拢18bn Hinkley Point C and the 拢1bn Swansea Bay tidal lagoon are threatening the UK鈥檚 access to reliable energy, infrastructure expert Sir John Armitt has warned.
Armitt (pictured) told 好色先生TV it was 鈥渃learly disappointing鈥 the two megaprojects 鈥 which together would provide up to 8% of the country鈥檚 electricity 鈥 had been hit by further delays, adding this had put 鈥渕ore pressure鈥 on the UK鈥檚 stretched energy supply.
This week EDF again put back its final investment decision on the Hinkley Point C nuclear power plant due to funding concerns, while last week progress on Swansea Bay tidal lagoon was thrown into jeopardy by a surprise government review of tidal power that could run until the autumn, potentially delaying agreement on a strike price.
A final investment decision on the Hinkley plant in Somerset could be several months away. Swansea Bay has already been delayed by a year, with the client body behind the project warning it will be delayed further if a strike price is not agreed with the government within 鈥渇our to six weeks鈥.
EDF said on Tuesday it will extend the life of four of its existing UK nuclear plants across the north of England and Scotland for between five and seven years to help make up for the expected shortfall in power.
Armitt, who is a commissioner on the National Infrastructure Commission and a former boss of the London 2012 Olympic Delivery Authority, said: 鈥淐learly over the next few years we will see a reduction in baseload [reliable] energy. The challenge is what we do about that. [The delays are] clearly disappointing and will only put more pressure on how we deal with that.鈥
In its full-year results on Tuesday, EDF insisted it was 鈥渇ully ready鈥 for a final investment decision and to start construction on Hinkley Point C, adding that 鈥渇inal steps are well in hand to enable the full construction phase to be launched very soon鈥.
A source close to the project told 好色先生TV that EDF has reiterated its instruction to suppliers to start assembling their workforce as if a decision has been made.
However, two economists told 好色先生TV that even if a decision is taken immediately, it would still be months before contractors start working on site again.
Experian construction analyst James Hastings said: 鈥淵ou can鈥檛 just turn the tap on and off again with these projects. Most contractors who have contracts at Hinkley are unlikely to start reassembling their teams until a decision is made.鈥
Economics director at the CPA, Noble Francis, said: 鈥淲e have main works only pencilled in for 2018 as further delays are likely.鈥
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