British Energy Group has announced that, having completed the necessary technical and economic evaluation and received the relevant external consents, it has decided to extend the lives of Hinkley Point B and Hunterston B power stations by five years to 2016. This decision extends the life of these stations for accounting purposes to 40 years. Further studies will be conducted by 2013 regarding the potential for additional life extension beyond 2016.
In April 2007, the 10-year Periodic Safety Reviews ('PSRs') for Hinkley Point B and Hunterston B were completed, covering the period to 2017, subject to completion of an agreed programme of work. The operation of these stations over their extended lives will be subject to the results of the continuing programme of inspection and assessment of the boilers and the core.
Hinkley Point B and Hunterston B are currently operating in a range around 60% load. Further boiler balancing work will be undertaken during planned outages over the next financial year directed at delivering approximately 70% load. At 70% load, life extension is economically viable at a power price of approximately £27/MWh. British Energy will consider, in due course, the technical and economic case to increase load above 70%, together with the additional investment requirements.
To enable Hinkley Point B and Hunterston B power stations to operate over their extended lives, British Energy expects to spend an additional £90m in excess of the current investment programme for these stations, over the three years commencing 1 April 2008.
In financial year 2007/08, British Energy expects total Group investment in plant projects, major repairs and strategic spares to be in the range £190m to £210m, excluding investment at Hinkley Point B and Hunterston B of £60m to £70m and excluding incremental expenditure on inspection and assessment of the Boiler Closure Units ('BCUs') at Hartlepool and Heysham 1 of around £20m.
In financial year 2008/09, Group investment in plant is expected to be in the range £200m to £215m for the fleet, excluding investment at Hinkley Point B and Hunterston B of £80m to £90m.
With immediate effect, staff costs associated with the company's performance improvement programme ('PiP staff costs') of £26m will now be treated as normal operating costs, and therefore are excluded from the company's definition of investment in plant.
The potential for life extensions at British Energy's other nuclear power stations will be considered in due course, subject to separate technical and economic evaluation, currently expected to be completed a minimum of three years before the scheduled closure date of each respective station.
Bill Coley, Chief Executive Officer said: "This decision is based on a comprehensive technical and economic evaluation of Hinkley Point B and Hunterston B and is important in supporting the UK's climate change goals for the reduction of CO2 emissions. Life extension helps provide support as the country considers energy conservation, efficiency and investment in new generating plant of all types, to serve the needs of the UK into the next century."
In April 2007, the 10-year Periodic Safety Reviews ('PSRs') for Hinkley Point B and Hunterston B were completed, covering the period to 2017, subject to completion of an agreed programme of work. The operation of these stations over their extended lives will be subject to the results of the continuing programme of inspection and assessment of the boilers and the core.
Hinkley Point B and Hunterston B are currently operating in a range around 60% load. Further boiler balancing work will be undertaken during planned outages over the next financial year directed at delivering approximately 70% load. At 70% load, life extension is economically viable at a power price of approximately £27/MWh. British Energy will consider, in due course, the technical and economic case to increase load above 70%, together with the additional investment requirements.
To enable Hinkley Point B and Hunterston B power stations to operate over their extended lives, British Energy expects to spend an additional £90m in excess of the current investment programme for these stations, over the three years commencing 1 April 2008.
In financial year 2007/08, British Energy expects total Group investment in plant projects, major repairs and strategic spares to be in the range £190m to £210m, excluding investment at Hinkley Point B and Hunterston B of £60m to £70m and excluding incremental expenditure on inspection and assessment of the Boiler Closure Units ('BCUs') at Hartlepool and Heysham 1 of around £20m.
In financial year 2008/09, Group investment in plant is expected to be in the range £200m to £215m for the fleet, excluding investment at Hinkley Point B and Hunterston B of £80m to £90m.
With immediate effect, staff costs associated with the company's performance improvement programme ('PiP staff costs') of £26m will now be treated as normal operating costs, and therefore are excluded from the company's definition of investment in plant.
The potential for life extensions at British Energy's other nuclear power stations will be considered in due course, subject to separate technical and economic evaluation, currently expected to be completed a minimum of three years before the scheduled closure date of each respective station.
Bill Coley, Chief Executive Officer said: "This decision is based on a comprehensive technical and economic evaluation of Hinkley Point B and Hunterston B and is important in supporting the UK's climate change goals for the reduction of CO2 emissions. Life extension helps provide support as the country considers energy conservation, efficiency and investment in new generating plant of all types, to serve the needs of the UK into the next century."
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