nuclear-news

EDF’s financial woes increases delay on decision about Hinkley nuclear plant

EDF funds shortfall adds to nuclear plant delay Michael Stothard in Paris and Kiran Stacey in London, Ft.com 14 Feb 16 High quality global journalism requires investment.
EDF has still not secured funding for a £18bn nuclear plant at Hinkley Point in Somerset, further delaying one of the UK’s biggest energy projects.

Board members at the French utility will meet on Monday to sign off on the company’s annual results. Some supporters of the Hinkley Point plant had hoped they would use the meeting to give the scheme their final approval, but two people close to the process told the Financial Times EDF has not secured the necessary funding.

The final investment decision is not on the formal agenda, those people said, with one person saying it could be several months before all the financing is lined up…….

The market turmoil this year has made discussions over the financing more difficult, one person close to the talks said. EDF is in discussions with the French government to help find financing.

EDF is also spending at least €1.25bn to buy a majority stake in Areva reactor unit, Areva NP, as part of a government-backed bailout. It also faces a €100bn bill to upgrade its ageing nuclear power stations by 2030.

EDF said in September last year that the plant it is building in Flamanville, Normandy — already years overdue — would be delayed another year until 2018 and would cost €10.5bn, up from an initial budget of €3bn.

The UK government and EDF executives had hoped a final investment decision would swiftly follow the company’s agreement in October with CGN, the Chinese state-owned nuclear group, on how much of the deal each would finance. http://www.ft.com/intl/cms/s/0/34a0fbee-d1a0-11e5-92a1-c5e23ef99c77.html#axzz40BFAOtmS

February 15, 2016 - Posted by Christina Macpherson | business and costs, France, UK