Risk analyses to support EDF investment decision in building Hinkley Point C’s £18bn EPR nuclear
EDF’s HPC plant will be the first in a new generation of nuclear power stations making a major contribution towards a low carbon economy. Integrated into the client’s delivery teams, Dada Enterprises supported the Sweett Group in providing a comprehensive range of pre contract commercial support services and risk management. We provided everything from risk workshops, writing risk management plans, to undertaking cost/schedule quantitative analyses of projects to inform EDF of the likely outturn costs and completion dates.
Construction projects are inherently uncertain, particularly during the early concept phase. Our task was to review the risks and help EDF put them under control.
Throughout its 10 year construction, Hinkley Point C in Somerset, will create over 25,000 new employment opportunities and provide enough power to supply 7% of Britain’s homes for 60 years. Crucially the £18bn project’s final investment decision determines the resulting electricity strike price. EFD required detailed risk analyses and modelling to support their business case and private investment.
The Dada Enterprises Advantage
The key success factors for EDF Energy was to meet the Department of Energy & Climate Change (DECC) requirements for investment analysis on final decision.
- Quantitative schedule risk analysis on Mechanical Erection and Electrical programme (value circa £2bn)
- Commercial tender bid analysis on NEC3 / FIDD contracts across portfolio of +70 contracts.
- Value engineering / value management
- Technical due diligence
- Risk analysis and risk management
- Power generation and supply
- Project feasibility
- Project, design and cost management
- Economic studies and business planning
- Cost planning and pre contract cost control
- Whole Life Costing
- Cost and/or schedule quantitative analyses
- Organisational Governance and Change Control
“We applied a range of qualitative and quantitative techniques to review and analyse potential risks and ensure that appropriate processes are in place to mitigate them. Included was the provision of independent facilitation, training, and development of software and specialist analytical technique.”
Lee Stranders, Risk & Change Manager at Nuclear New Build, EDF