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Tucson Electric Power Coal Phaseout advances an Integrated Resource Plan to exit Springerville coal by 2032, lift renewables past 70 percent by 2035, add wind, solar, battery storage, and cut carbon emissions 80 percent.

Key Points

A 2032 coal exit and 2035 plan to lift renewables above 70 percent, add wind, solar, storage, and cut CO2 80 percent.

✅ Coal purchases end at Springerville units by 2032

✅ Renewables exceed 70 percent of load by 2035

✅ 80 percent CO2 cut from 2005 baseline via wind, solar, storage

In a dramatic policy shift, Tucson Electric Power says it will stop using coal to generate electricity by 2032 and will increase renewable energy's share of its energy load to more than 70% by 2035.

As part of that change, the utility will stop buying electricity from its two units at its coal-fired Springerville Generating Station by 2032. The plant, TEP's biggest power source, provides about 35% of its energy.

The utility already had planned to start up two New Mexico wind farms and a solar storage plant in the Tucson area by next year. The new plan calls for adding an additional 2,000 megawatts of renewable energy capacity by 2035.

The utility's switch from fossil fuels is spelled out in the plan, submitted to the Arizona Corporation Commission, amid shifts in federal power plant rules that could affect implementation. Called an Integrated Resource Plan, it would reduce TEP's carbon dioxide emissions 80% by 2035 compared with 2005 levels.

The plan drew generally positive reviews from a number of environmentalists and other representatives of an advisory committee that had worked with TEP for a year.

Two commissioners, Chairman Bob Burns and Tucsonan Lea Marquez Peterson, also generally praised the plan, although they held off on final judgment.

University of Arizona researchers said the plan would likely meet the utility's share of the worldwide goal of holding down global temperatures to less than 2 degrees Celsius, or about 3.6 degrees Fahrenheit, above pre-industrial levels, even as studies find that climate change threatens grid reliability in many regions.

But a representative of AARP and the Pima Council on Aging expressed concern because the plan would require 1% annual electric rate increases a year to put into effect.

Officials in the eastern Arizona town of Springerville aren't happy.

And Sierra Club official Sandy Bahr said the plan doesn't move fast enough to get TEP off coal. She listed 14 separate units of various Western coal-fired plants that are scheduled to shut down sooner than 2032, many in the 2020s.

But TEP says the plan best balances costs and environmental benefits compared with 24 others it reviewed.

"We know our customers want safe, reliable energy from resources that are both affordable and environmentally responsible. TEP's 2020 Integrated Resource Plan will help us maintain that delicate balance," TEP CEO David Hutchens wrote in the forward to the plan.

The plan isn't legally binding but is aimed at sending a signal to regulators and the public about TEP's future direction. TEP and other regulated Arizona utilities update such plans every three years.

TEP has been one of the West's more fossil-fuel-friendly utilities. It stuck with coal even as many other utilities were moving away from it, including Alliant Energy's carbon-neutral plan to cut emissions and costs, and as the Sierra Club called on utilities to move beyond what it termed a highly polluting energy source that emits large quantities of heat-trapping greenhouse gases linked by scientists to global warming.

Last year, TEP got 13% of its electricity from renewables such as wind farms and solar plants along with photovoltaic solar panels atop individual homes. Fossil fuels coal and natural gas supplied the rest, a University of Arizona study paid for by TEP found.

Economics, not just emissions, a big factor

TEP's previous resource plan, from 2017, called for boosting renewable use to 30% by 2030 and to cut coal to 38% of its electric load by then from 69% in 2017, reflecting broader 2017 utility trends across the industry.

A TEP official said last week the utility is heading in a different direction not only due to concerns about greenhouse gas emissions but because of changing economics.

"For the last several decades, coal was the most economical resource. It was the lowest-cost resource to supply energy for our customers, and it wasn't really close," said Jeff Yockey, TEP's resource planning director.

But over the past few years, first natural gas prices and more recently solar and wind energy prices have fallen dramatically, he said.

Their prices are projected to keep falling, along with the cost of battery-fueled storage of solar energy for use when the sun is down, he said.

"Coal just isn't the most economical resource" now, Yockey said.

Yet the utility still needs, for now, the extra energy capacity that coal provides, he said, even as other states outline ways to improve grid reliability through targeted investments.

"Being a utility with no nuclear or hydro(electric) energy, with coal, there is reliability, a fuel on the ground, 30 or 90 days supply," he said. "It's the only source not subject to disruption in the next hour. It's our only long-term, stable fuel supply. Over time, we will be able to overcome that."

UA researchers, community panel worked on plan

TEP paid the UA $100,000 to have three researchers prepare two reports, one comparing 24 different proposals and a second comparing TEP's fossil fuel/renewable split with those of other utilities.

Also, the utility appointed an advisory council representing environmental, business and government interests that met regularly to guide TEP in producing the plan. The utility chose a preferred energy "portfolio," Yockey said.

The goal "was very much about basically achieving significant emissions reductions as quickly as we can and as cost effectively as we can," he said. TEP wanted the biggest cumulative emission cut possible over 15 years.

"If it was just about cost, we wouldn't have selected the portfolio that we selected. It wasn't the lowest cost portfolio."

UA assistant research professors Ben McMahan and Will Holmgren said combined carbon dioxide emission reductions from TEP's new plan over 15 years would be expected to hit the Paris accord's 2-degree target.

"There is considerable uncertainty about what will happen between now and 2050, but the preferred portfolio's early start on reductions and lowest cumulative emissions is certainly a positive sign that well below 2C is achievable," the researchers said in an email.

Environmentalists pleased, but some want coal cut sooner

The Sierra Club, Western Resource Advocates, the Southwest Energy Efficiency Project and Pima County offered varying degrees of praise for the new TEP plan.

In a memo Friday, County Administrator Chuck Huckelberry congratulated TEP for "the comprehensive, inclusive and transparent process" used to develop the plan.

Because of UA's involvement, TEP's advisory council and the public "can feel confident that the utility is on track to make significant progress in curbing greenhouse gas emissions to combat climate change," Huckelberry wrote.

The TEP plan "is the most aggressive commitment to reducing emissions by a utility in Arizona," said Autumn Johnson of Western Resource Advocates in a news release.

"Adding clean energy generation and storage while accelerating the retirement of coal units will ensure a healthier and better future for Arizonans," said Johnson, an energy policy analyst in Phoenix.

The Sierra Club will have a technical expert review the plan and already wants more energy savings, said Bahr, director of the group's Grand Canyon chapter. But overall, this plan is a step in the right direction for TEP, she said.

By comparison, Arizona Public Service's new resource plan only calls for 45% renewable energy by 2030, Bahr noted, while California regulators consider more power plants to ensure reliability. APS committed to going coal-free by 2031.

A Sierra Club proposal that the UA reviewed called for TEP to quit coal by 2027.

But TEP analyzed that proposal and concluded it would require $300 million in investments and would reduce the utility's cumulative emissions by only 2.4 million tons, to 70.2 million tons by 2035, Yockey said.

The Sierra Club plan was the most expensive portfolio investigated, Yockey said.

"The difference is in the timing. We still have a fair amount of value in our coal plants which we need to depreciate, which we do over time," Yockey said. "Trying to replace the capacity that coal provides in the near term with storage and solar is very expensive, although those costs are declining."

Seniors on fixed incomes could be hurt, advocate says

Rene Pina, an advisory council member representing two senior citizen organizations, praised the plan's goals but was concerned about impacts of even 1% annual rate increases on elderly people on fixed incomes.

They can't always handle such an increase, he said.

One possible fix is that TEP could ease eligibility requirements for its low-income energy assistance program, aligning with equity-focused electricity regulation principles, to allow more seniors to benefit, said Pina, representing AARP and the Pima Council on Aging.

"The program is structured so it just barely disqualifies most of our seniors. Their social security pension is just barely over the low-income limit. It can easily be adjusted without any problems to the utility," Pina said.

Advisory council member Rob Lamb, an engineer with GHLN, an architecture-engineering firm, said he was very pleased with TEP's plan.

"One of the things a lot of people don't realize when they put together a plan like that, is they have to balance environment with 'Hey, what's the reliability of service? Are we going to be able to keep our rates for something that will work?'" Lamb said.

"This a very balanced and resilient portfolio."

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Rolls-Royce and Exelon UKSMR Partnership accelerates factory-built small modular reactors, nuclear power, clean energy, 440MW units, advanced manufacturing, fleet deployment, net zero goals, and resilient, low-cost baseload generation in the UK and globally.

Key Points

A partnership to deploy factory-built SMR stations, providing 440MW low-carbon baseload for the UK and export markets.

✅ 440MW factory-built SMR units with rapid modular assembly

✅ Exelon to operate and enhance high capacity factors

✅ Supports UK net zero, jobs, and export-led manufacturing

Rolls-Royce and Exelon Generation have signed a Memorandum of Understanding to pursue the potential for Exelon Generation to operate compact nuclear power stations both in the UK and internationally, including markets such as Canada where New Brunswick SMR questions are prompting public debate today.

Exelon Generation will be using their operational experience to assist Rolls Royce in the development and deployment of the UKSMR.

Rolls-Royce is leading a consortium that is designing a low-cost factory built nuclear power station, known as a small modular reactor (SMR), with UK mini-reactor approval anticipated as development progresses. Its standardised, factory-made components and advanced manufacturing processes push costs down, while the rapid assembly of the modules and components inside a weatherproof canopy on the power station site itself avoid costly schedule disruptions.

The consortium is working with its partners and UK Government to secure a commitment for a fleet of factory built nuclear power stations, each providing 440MW of electricity, to be operational within a decade, helping the UK meet its net zero obligations in line with the green industrial revolution policy set out by government. A fleet deployment in the UK will lead to the creation of new factories that will make the components and modules which will help the economy recover from the Covid-19 pandemic and pave the way for significant export opportunities as well.

The consortium members feature the best of nuclear engineering, construction and infrastructure expertise in Assystem, Atkins, BAM Nuttall, Jacobs, Laing O'Rourke, National Nuclear Laboratory, Nuclear Advanced Manufacturing Research Centre, Rolls-Royce and TWI. Exelon will add valuable operational experience to the team.

Tom Samson, interim Chief Executive Officer of the UKSMR consortium, said: 'Nuclear power is central to tackling climate change and economic recovery, but it must be affordable, reliable and investable and the way we manufacture and assemble our power station brings its cost down to be comparable with offshore wind.

'It's a compelling proposition that could draw new players into the UK's power generation landscape, improving choice for consumers and providing uninterrupted low carbon energy to homes and businesses.

'The opportunity to partner with Exelon is a very exciting prospect for our program, complementing our existing Consortium partnerships with one of the world's largest nuclear operator adds an important dimension to our growth ambitions, embodies the strength of the UK and USA alliance on nuclear matters and reflects wider international moves, such as a Canadian premiers' SMR initiative to accelerate technology development, and offers our future customers the ability to achieve the highest performance standards associated with Exelon's outstanding operational track record.'

The power stations will be built by the UKSMR consortium, before being handed over to be operated by power generation companies. Exelon Generation will work closely with the consortium during the pre-operation period. Exelon Nuclear operates 21 nuclear reactors in America, and U.S. regulators recently issued a final safety evaluation for a NuScale SMR that underscores momentum in the sector. The Exelon nuclear fleet is an integral part of the U.S. clean power mix; it produces more than 158 million megawatt-hours of clean electricity every year.

Bryan Hanson, EVP and COO of Exelon Generation said: 'We believe that SMRs are a crucial part of the world's clean energy mix, as projects like Darlington SMRs advance in Ontario. With our experience both in the US and internationally, Exelon is confident that we can help Rolls Royce ensure SMRs play a key role in the UK's energy future. We've had a very strong record of performance for 20 consecutive years, with a 2019 capacity factor of 95.7 percent. We will leverage this experience to achieve sustainably high capacity factors for the UKSMRs.'

Ralph Hunter, Managing Director of Exelon Nuclear Partners, who runs Exelon's international clean energy business, said: 'We have a strong track record of success to be the operator of choice for the UKSMR. We will help develop operational capability, training and human capacity development in the UK, as utilities such as Ontario Power Generation commit to SMRs abroad, ensuring localisation of skills and a strong culture of safety, performance and efficiency.'

By 2050 a full UK programme of a fleet of factory built nuclear power stations in the UK could create:

Up to 40,000 jobs GBP52BN of value to the UK economy GBP250BN of exports

The current phase of the programme has been jointly funded by all consortium members and UK Research and Innovation.

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Alberta Capacity Market Overhaul faces scrutiny over electricity costs, reliability targets, investor certainty, and AESO design, as UCP reviews NDP reforms, renewables integration, and deregulated energy-only alternatives impacting generators, ratepayers, and future power price volatility.

Key Points

A shift paying generators for capacity and energy to improve reliability; critics warn of higher electricity costs.

✅ UCP reviewing NDP plan and subsidies amid market uncertainty

✅ AESO cites reliability needs as coal retires, renewables grow

✅ Critics predict overprocurement and premature launch cost spikes

Jason Kenney's government is facing renewed pressure to cancel a massive overhaul of Alberta's power market that one player says will needlessly spike costs by hundreds of millions of dollars, amid an electricity sector in profound change today.

Nick Clark, who owns the Calgary-based electricity retailer Spot Power, has sent the Alberta government an open letter urging it to walk away from the electricity market changes proposed by the former NDP government.

"How can you encourage new industry to open up when one of their raw material costs will increase so dramatically?" Clark said. "The capacity market will add more costs to the consumer and it will be a spiral downwards."

But NDP Leader Rachel Notley, whose government ushered in the changes, said fears over dramatic cost increases are unfounded.

"There are some players within the current electricity regime who have a vested interest in maintaining the current situation," Notley said

Kenney's UCP vowed during the recent election to review the current and proposed electricity market options, as the electricity market heads for a reshuffle, with plans to report on its findings within 90 days.

The party also promised to scrap subsidies for renewable power, while ensuring "a market-based electricity system" that emphasizes competition in Alberta's electricity market for consumers.

The New Democrats had opted to scrap the current deregulated power market — in place since the Klein era — after phasing out coal-fired generation and ushering in new renewable power as part of changes in how Alberta produces and pays for electricity under their climate change strategy.

The Alberta Electric System Operator, which oversees the grid, says the province will need new sources of electricity to replace shuttered coal plants and backstop wind and solar generators, while meeting new consumer demand.

After consulting with power companies and investors, the AESO concluded in late 2016 the electricity market couldn't attract enough investment to build the needed power generation under the current model.

The AESO said at the time investors were concerned their revenues would be uncertain once new plants are running. It recommended what's known as a capacity market, which compensates power generators for having the ability to produce electricity, even when they're not producing it.

In other words, producers would collect revenue for selling electricity into the grid and, separately, for having the capacity to produce power as a backstop, ensuring the lights stay on. Power generators would use this second source of income to help cover plant construction costs.

Clark said the complex system introduces unnecessary costs, which he believes would hurt consumers in the end. He said what's preventing investment in the power market is uncertainty over how the market will be structured in the future.

"What investors need to see in this market is price certainty, regulatory ease, and where the money they're putting into the marketplace is not at risk," he said.

"They can risk their own money, but if in fact the government comes in and changes the policy as it was doing, then money stayed away from the province."

Notley said a capacity market would not increase power bills but would avoid big price swings, with protections like a consumer price cap on power bills also debated, while bringing greener sources of energy into Alberta's grid.

"Moving back to the [deregulated] energy-only market would make a lot of money for a few people, and put consumers, both industrial and residential, at great risk."

Clark disagrees, citing Enmax's recent submissions to the Alberta Utilities Commission, in which the utility argues the proposed design of the capacity market is flawed.

In its submissions to the commission, which is considering the future of Alberta's power market, Enmax says the proposed system would overestimate the amount of generation capacity the province will need in the future. It says the calculation could result in Alberta procuring too much capacity.

The City of Calgary-owned utility says this could drive up costs by anywhere from $147 million to $849 million a year. It says a more conservative calculation of future electricity demand could avoid the extra expense.

An analysis by a Calgary energy consulting firm suggests a different feature of the proposed power market overhaul could also lead to a massive spike in costs.

EDC Associates, hired by the Consumers' Coalition of Alberta, argues the proposal to launch the new system in November 2021 may be premature, because it could bring in additional supplies of electricity before they're needed.

The consultant's report, also filed with the Alberta Utilities Commission, estimates the early launch date could require customers to pay 40 per cent more for electricity amid rising electricity prices in the province — potentially an extra $1.4 billion — in 2021/22.

"The target implementation date is politically driven by the previous government," said Duane Reid-Carlson, president of EDC Associates.

Reid-Carlson recommends delaying the launch date by several years and making another tweak: reducing the proposed target for system reliability, which would scale back the amount of power generation needed to backstop renewable sources.

"You could get a result in the capacity market that would give a similar cost to consumers that the [deregulated] energy-only market design would have done otherwise," he said.

"You could have a better risk profile associated with the capacity market that would serve consumers better through lower cost, lower price volatility, and it would serve generators better by giving them better access to capital at lower costs."

The UCP government did not respond to a request for comment.

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Community Solar for Low-Income Homes expands energy equity by delivering renewable energy access, predictable bill savings, and tax credit benefits to renters and energy-insecure households, accelerating distributed generation and storage adoption nationwide.

Key Points

A program model enabling renters and LMI households to subscribe to off-site solar and save on utility bills.

✅ Earn bill credits from shared solar generation.

✅ Expands access for renters and LMI subscribers.

✅ Often paired with storage and IRA tax credit adders.

On a square-foot basis, the issue of inequality is made worse by higher costs for energy usage in the nation. Efforts like community solar programs such as Maryland community solar are underway to boost low-income participation in the cost benefits of renewable energy.

The Energy Information Administration (EIA) shows that households that are considered energy insecure, or those that have the inability to adequately meet basic household energy costs, are paying more for electricity than their wealthier counterparts. 

On average in the United States in 2020, households were billed about $1.04 per square foot for all energy sources. For homes that did not report energy insecurity, that average was $0.98 per square foot, while homes with energy insecurity issues paid an average of $1.24 per square foot for energy. This means that U.S. residents that need the most support on their energy bills are stuck with costs 27% higher than their neighbors on square-foot-basis.

EIA said energy-insecure households have reduced or forgone basic necessities to pay energy bills, kept their houses at unsafe temperatures because of energy cost concerns, or been unable to repair heating or cooling equipment because of cost.

In 2020, households with income less than $10,000 a year were billed an average of $1.31 per square foot for energy, while households making $100,000 or more were billed an average of $0.96 per square foot, said EIA. Renters paid considerably more ($1.28 per square foot) than owners ($0.98 per square foot). There were also considerable differences between regions, with New England solar growth sparking grid upgrade debates, ethnic groups and races, and insulation levels, as seen below.

The energy transition toward renewables like solar has offered price stability, amid record solar and storage growth nationwide, but thus far energy-insecure communities have relatively been left behind. A recent Berkeley Lab report, Residential Solar-Adopter Income and Demographic Trends, indicates that even though the rate of solar adoption among low-income residents is increasing (from 5% in 2010 to 11% in 2021), that segment of energy consumers remains under-represented among solar adopters, relative to its share of the population.

Community solar efforts

As such, the United States is targeting communities most impacted by energy costs that have not benefitted from the transition, highlighting “Energy Communities” that are eligible for an additional 10% tax credit through funds made possible by the Inflation Reduction Act.

Additionally, a push for community solar development is taking place nationwide to extend access to affordable solar energy to renters and other residents that aren’t able to leverage finances to invest in predictable, low-cost residential solar systems. The Biden Administration set a goal this year to sign up 5 million community solar households, achieving $1 billion in bill savings by 2025. The community solar model only represents about 8% of the total distributed solar capacity in the nation. This target would entail a jump from 3 GW installed capacity to 20 GW by the target year. The Department of Energy estimates community solar subscribers save an average of 20% on their bills.

California this year passed AB 2316, the Community Renewable Energy Act takes aim at four acute problems in the state’s power market: reliability amid rising outage risks, rates, climate and equity. The law creates a community renewable energy program, including community solar-plus-storage, supported by cheaper batteries, to overcome access barriers for nearly half of Californians who rent or have low incomes. Community solar typically involves customers subscribing to an off-site solar facility, receiving a utility bill credit for the power it generates.

“Community renewable energy is a proven powerful tool to help close California’s clean energy gap, bringing much needed relief to millions struggling with high housing costs and utility debt,” said Alexis Sutterman, energy equity program manager at the California Environmental Justice Alliance.

The program has energy equity baked into its structure, working to make sure Californians of all income levels participate in the benefits of the energy transition. Not only does it open solar access to renters, the law ensures that at least 51% of subscribers are low-income customers, which is expected to make projects eligible for a 10% tax credit adder under the IRA.

“The money’s on the table now,” said Jeff Cramer, president and chief executive of the Coalition for Community Solar Access. “While there are groups pushing for solar access for all, and states with strong legislation, there are other pockets of interest in surprising places in the United States. For example, Louisiana has no policy for community solar or support for low-income residents going solar but the city of New Orleans has its own utility commission with a community solar program. In Nebraska, forward-looking co-operatives have created community solar projects.

Community solar markets are active in 22 states, with more expected to come online in the future as states pursue 100% clean energy targets across the country. However, the market is expected to require strong community outreach efforts to foster trust and gain subscribers.

“There is a distrust of community solar initially in LMI communities as many have been burned before by retail energy false promises,” said Eric LaMora, executive director, community solar, Nautilus Solar on a panel at the Solar Energy Industries Association Finance, Tax, and Buyers seminar. “People are suspicious but there really are no hooks with community solar.”

LMI residents are leery to provide tax records or much documents at all in order to sign up for community solar, LaMora said. “We were surprised to see less of a default rate with LMI residents. We attribute this to the fact that they see significant savings on their electric bill, making it easier to pay each month,” he said.

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UK Future System Operator to replace National Grid as ESO, enabling smart grid reform, impartial system planning, vehicle-to-grid, long duration storage, and data-driven oversight to meet net zero and cut consumer energy costs.

Key Points

The UK Future System Operator is an independent ESO and planner, steering net zero with impartial data and smart grid coordination.

✅ Replaces National Grid ESO with independent system operator

✅ Enables smart grid, vehicle-to-grid, and long-duration storage

✅ Supports net zero, lower bills, and impartial system planning

The government plans to strip National Grid of its role keeping Great Britain’s lights on as part of a proposed “revolution’” in the electricity network driven by smart digital grid technologies.

The FTSE 100 company has played a role in managing the energy system of England, Scotland and Wales, including efforts such as a subsea power link that brings renewable power from Scotland to England (Northern Ireland has its own network). It is the electricity system operator, balancing supply and demand to ensure the electricity supply. But it will lose its place at the heart of the industry after government officials put forward plans to replace it with an independent “future system operator”.

The new system controller would help steer the country towards its climate targets, at the lowest cost to energy bill payers, by providing impartial data and advice after an overhaul of the rules governing the energy system to make it “fit for the future”.

The plans are part of a string of new proposals to help connect millions of electric cars, smart appliances and other green technologies to the energy system, and to fast-track grid connections nationwide, which government officials believe could help to save £10bn a year by 2050, and create up to 10,000 jobs for electricians, data scientists and engineers.

The new regulations aim to make it easier for electric cars to export electricity from their batteries back on to the power grid or to homes when needed. They could also help large-scale and long-duration batteries play a role in storing renewable energy, supported by infrastructure such as a 2GW substation helping integrate supply, so that it is available when solar and wind power generation levels are low.

Anne-Marie Trevelyan, the energy and climate change minister, said the rules would allow households to “take control of their energy use and save money” while helping to make sure there is clean electricity available “when and where it’s needed”.

She added: “We need to ensure our energy system can cope with the demands of the future. Smart technologies will help us to tackle climate change while making sure that the lights stay on and bills stay low.”

The energy regulator, Ofgem, raised concerns earlier this year that National Grid would face a “conflict of interest” in providing advice on the future electricity system because it also owns energy networks that stand to benefit financially from future investment plans. It called for a new independent operator to take its place.

Jonathan Brearley, Ofgem’s chief executive, said the UK requires a “revolution” in how and when it uses electricity, including demand shifts during self-isolation to help meet its climate targets and added that the government’s plans for a new digital energy system were “essential” to meeting this goal “while keeping energy bills affordable for everyone”.

A National Grid spokesperson said the company would “work closely” with the government and Ofgem on the role of a future system operator, as well as “the most appropriate ownership model and any future related sale”.

The division has earned National Grid, which has addressed cybersecurity fears in supplier choices, an average of £199m a year over the last five years, or 1.3% of the group’s total revenues, which are split between the UK – where it operates high-voltage transmission lines in England and Wales, and the country’s gas system – and its growing energy supply business in the US, aligned with investment in a smarter electricity infrastructure in the US to modernize grids.

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Hinkley Point C dome lift marks a nuclear reactor milestone in Somerset, as EDF used Big Carl crane to place a 245-tonne steel roof, enabling 2027 startup amid costs, delays, and precision indoor welding.

Key Points

A 245-tonne dome lifted onto Hinkley Point C's first reactor, finishing the roof and enabling fit-out for a 2027 startup.

✅ 245-tonne steel dome lifted by Big Carl onto 44m-high reactor

✅ Indoor welding avoided weather defects seen at Flamanville

✅ Cost now £33bn; first power targeted by end of 2027

Engineers have lifted a steel roof onto a building which will house the first of two nuclear reactors at Hinkley Point in Somerset.

Hundreds of people helped with the delicate operation to get the 245-tonne steel dome into position.

It means the first reactor can be installed next year, ready to be switched on in June 2027.

Engineers at EDF said the "challenging job" was completed in just over an hour.

They first broke the ground on the new nuclear station in March 2017. Now, some 10,000 people work on what is Europe's largest building site.

Yet many analysts note that Europe is losing nuclear power even as demand for reliable energy grows.

They have faced delays from Covid restrictions and other recent setbacks, and the budget has doubled to £33bn, so getting the roof on the first of the two reactor buildings is a big deal.

EDF's nuclear island director Simon Parsons said it was a "fantastic night".

"Lifting the dome into place is a celebration of all the work done by a fantastic team. The smiles on people's faces this morning were something else.

"Now we can get on with the fitting of equipment, pipes and cables, including the first reactor which is on site and ready to be installed next year."

Nuclear minister Andrew Bowie hailed the "major milestone" in the building project, citing its role in the UK's green industrial revolution ambitions.

He said: "This is a key part of the UK Government's plans to revitalise nuclear."

But many still question whether Hinkley Point C will be worth all the money, especially after Hitachi's project freeze in Britain, with Roy Pumfrey of the Stop Hinkley campaign describing the project as "shockingly bad value".

Why lift the roof on?

The steel dome is bigger than the one on St Paul's Cathedral in London.

To lift it onto the 44-metre-high reactor building, they needed the world's largest land-based crane, dubbed Big Carl by engineers.

So why not just build the roof on top of the building?

The answer lies in a remote corner of Normandy in France, near a village called Flamanville.

EDF has been building a nuclear reactor there since 2007, ten years before they started in west Somerset.

The project is now a decade behind schedule and has still not been approved by French regulators.

Why? Because of cracks found in the precision welding on the roof of the reactor building.

In nuclear-powered France, they built the roof in situ, out in the open. 

Engineers have decided welding outside, exposed to wind and rain, compromised the high standards needed for a nuclear reactor.

So in Somerset they built a temporary workshop, which looks like a fair sized building itself. All the welding has been done inside, and then the completed roof was lifted into place.

Is it on time or on budget?

No, neither. When Hinkley C was first approved a decade ago, EDF said it would cost £14bn.

Four years later, in 2017, they finally started construction. By now the cost had risen to £19.5bn, and EDF said the plant would be finished by the end of 2025.

Today, the cost has risen to £33bn, and it is now hoped Hinkley C will produce electricity by the end of 2027.

"Nobody believes it will be done by 2027," said campaigner Roy Pumfrey.

"The costs keep rising, and the price of Hinkley's electricity will only get dearer," they added.

On the other hand, the increase in costs is not a problem for British energy bill payers, or the UK government.

EDF agreed to pay the full cost of construction, including any increases.

When I met Grant Shapps, then the UK Energy Secretary, at the site in April, he shrugged off the cost increases.

He said: "I think we should all be rather pleased it is not the British tax payer - it is France and EDF who are paying."

In return, the UK government agreed a set rate for Hinkley's power, called the Strike Price, back in 2013. The idea was this would guarantee the income from Hinkley Point for 35 years, allowing investors to get their money back.

Will it be worth the money?

Back in 2013, the Strike Price was set at £92.50 for each megawatt hour of power. At the time, the wholesale price of electricity was around £50/MWh, so Hinkley C looked expensive.

But since then, global shocks like the war in Ukraine have increased the cost of power substantially, and advocates argue next-gen nuclear could deliver smaller, cheaper, safer designs.

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