nuclear-news

Meltdown in France’s nuclear dream – taxpayers to cop the costs

External factors may have precipitated the crash of Areva, but the cause is internal. Areva and the French nuclear industry is controlled by engineers and state officials and the market comes as an afterthought.

The problems of time and cost overruns in China, Finland and now in France at Flamanville are self-made and part of the “esprit de corps” arrogant attitude of the organisation.

Now, 13 years later, the problem needs to be addressed and risks costing billion of euros and thousands of jobs

France’s Nuclear Industry Dream Faces Melt-Down At Expense Of State Coffers, Tax Payers Forbes, Marcel Michelson, 3 June 15 France has decided to rescue its Areva nuclear energy company once again, this time by combining the nuclear power station creation business with state-controlled power operator EDF , its biggest client.

Only a few years back, in 2010, Areva’s finances had been restored by the forced sale of its transport and transmission activities to industrial group Alstom and electrical engineer Schneider . Meanwhile, GE of the United States controls the Alstom power activities as part of its own rescue recapitalisation.

The rest of Areva includes uranium mines, nuclear waste recycling, transport, storage and some alternative energy activities.

For all intents and purposes, Areva is dead. It was created in 2001 by throwing together various nuclear energy related state assets, as a sort of desperate leap forwards to provide cash-generating activities to the loss-making nuclear power station building activities.

Now, EDF and Areva will have a month to finalise a deal. EDF is likely to pay for the assets, but the state will also have to dip in for a capital increase, which means that France will pay twice for ending what was once a great dream – partly via its electricity consumers and partly by the tax payer…………..

the Fukushima accident came along with the tsunami, and the world lost its love with nuclear.

That is the external story many French officials would like to blame for the Areva disaster. They are wrong.

It’s the client, stupid!

External factors may have precipitated the crash of Areva, but the cause is internal. Areva and the French nuclear industry is controlled by engineers and state officials and the market comes as an afterthought.

The problems of time and cost overruns in China, Finland and now in France at Flamanville are self-made and part of the “esprit de corps” arrogant attitude of the organisation.

The French designed the best possible nuclear reactors with their computer programmes and small-scale models, but they did not design reactors that they knew they could actually build. By pushing the technological barriers, out of an intellectual challenge and national pride, they pushed the projects beyond feasibility, let alone profitability……

Now, 13 years later, the problem needs to be addressed and risks costing billion of euros and thousands of jobs. But still, the state might be tempted to find another expedient to keep up appearances until after the next presidential election in 2017, or until economic growth picks up and unemployment falls……http://www.forbes.com/sites/marcelmichelson/2015/06/04/frances-nuclear-industry-dream-faces-melt-down-at-expense-of-state-coffers-tax-payers/2/

June 6, 2015 - Posted by Christina Macpherson | business and costs, France, politics