nuclear-news

EDF’s setbacks weigh down the relaunch of nuclear power in Europe

Montel. EDF’s recent setbacks in its project to build two new generation EPR reactors in the United Kingdom darken the prospects for the revival of nuclear power in Europe, experts told Montel.

Montel) EDF's recent setbacks in its project to build two new generation EPR reactors in the United Kingdom darken the prospects for the revival of nuclear power in Europe, experts told Montel.

By: Muriel Boselli,  8 Feb 2024, https://montelnews.com/fr/news/1537158/les-revers-dedf-plombent-la-relance-du-nuclaire-en-europe-
A dispute between Paris and London over who should pay GBP 6-8 billion (in 2015 values) for new additional costs for the Hinkley Point C (HPC) project is tarnishing the image of the nuclear industry, at a time when nations European pro-nuclear companies seek to promote atomic energy in the fight against climate change, according to several experts.

Commissioning of the HPC project could be delayed by up to four years and completion costs are now expected to be between GBP31bn and £34bn, according to EDF announcements last month.

Hinkley's problems underline the "slow descent into hell" of the French nuclear industry, Jean-François Raux, former director of EDF and general delegate of the French Electricity Union (UFE), told Montel.

“I have fierce doubts about EDF's ability to build more reactors,” he said, highlighting the delays and additional costs of new construction in France, Finland and the United Kingdom.

Indeed, the start-up of the Flamanville EPR by mid-2024 was “very tense”, with EDF still having to submit compliance documents, the director of the Nuclear Safety Authority (ASN) declared last week. The project is already twelve years late.

According to a source close to the matter at EDF, the company could even withdraw from HPC, although this scenario is not the most likely. “The board of directors did not sign a blank check for Hinkley, it barely committed to financing the project for 2024,” he assures.

Threat to the relaunch of nuclear power
The French nuclear recovery program provides for the construction of six EPR2s in France at an estimated cost of EUR 52 billion. A first pair of reactors is planned at Penly, in the northwest of the country by 2035-2037.

However, these ambitions are threatened by difficulties encountered at the Hinkley site, experts said.

“The problem is that we will have to launch construction work on two European pressurized reactors at Penly, while we continue to inject billions into HPC,” estimated the source at EDF. “There will inevitably be plasters to wipe and skills to find,” he added, noting that the Penly EPRs will “inevitably encounter difficulties”.

Florence de Bonnafos, campaign manager at Greenpeace, agrees with these comments, believing that EDF's nuclear revival project is unrealistic given the latest cost estimates for the two HPC reactors.

“It’s still a bit complicated to make us believe that we will be able to build six reactors for the same budget as two reactors in Great Britain,” she said.

The schedule slip on the HPC project follows reports that EDF's Chinese partner CGN has pulled out of financing the project, leaving a gap of GBP1bn per year.

The issue could impact funding for the UK's other planned flagship nuclear project at Sizewell C, a joint venture between the UK government and CGN. EDF, in debt to the tune of EUR 65 billion, is expected to make a final investment decision next summer.

Political decisions
The subject of financing is at the heart of a standoff between the French and British governments, with Paris partly accusing the United Kingdom of having frozen its diplomatic relations with China.

Elsewhere, in the Czech Republic, where EDF has submitted a bid to build four reactors, officials could be tempted to choose Korean competitor KHNP, analysts said.

“The main problem is that the decisions taken are more political than industrial,” said the EDF source. “No one thought that we would do HPC and Flamanville in the given time. It was custard. »

In addition, Mr. Raux notes a lack of accountability within EDF. “In other sectors, when things go wrong, leaders are replaced,” he said.

This is the first part of a two-part article devoted to the prospects for nuclear development in the EU.

February 17, 2024 - Posted by Christina Macpherson | business and costs, EUROPE