French utility EDF warned on Wednesday that its Flamanville nuclear project in France will cost 1.5 billion euros ($1.65 billion) more than previously expected as it counts the costs of weld repairs demanded by French nuclear watchdog the ASN, reports Reuters.
Running a decade behind schedule, Flamanville is now expected to cost 12.4 billion euros, EDF said, a month after warning its Hinkley Point C nuclear plant in Britain could cost 2.9 billion pounds ($3.6 billion) more than forecast.
EDF shares fell more than 1% to hit lows not seen in two years.
“It’s a disaster. EDF tried to compete and become a leader in the sector but it’s just one delay after another with them,” said Ion-Marc Valahu, fund manager at Geneva-based investment firm Clairinvest, which does not own EDF shares.
Flamanville 3 was meant to open in 2012. In June EDF pushed back the start date by three years to 2022. Wednesday’s announcement indicates the start will now slide into 2023.
EDF said its preferred approach would be to use remote-operated robots to do the repairs at Flamanville and have the ASN validate the work by end-2020.
“The provisional schedule ...results in the date of fuel loading at the end 2022,” EDF said in a statement.
It usually takes five to six months after fuel loading to begin commercial operations, EDF Senior Executive Vice-President Xavier Ursat said on a conference call with reporters and analysts, indicating start-up will now be in 2023.
If the ASN does not validate EDF’s preferred approach, EDF has a fall-back plan but that would mean additional costs of 400 million euros and an additional one year delay, Ursat said.