The UK is set to sign a deal with France’s EDF for the first nuclear plant to start construction in Europe since Japan’s Fukushima disaster raised safety concerns worldwide, at a cost estimated at around $23 billion (€17 billion).
Under the deal, to be announced today, the French state-controlled utility will lead a consortium, including a Chinese group, to construct two European Pressurised Water Reactors (EPRs) designed by France’s Areva.
Industry estimates, based on other nuclear projects, put the cost at around €16 billion.
EDF’s long-time partner China General Nuclear Power Group (CGN), possibly in combination with China National Nuclear Corporation (CNNC), is expected to have a 30 to 40 per cent stake in the consortium, with Areva taking another 10 per cent, according to newspapers including France’s Les Echos and Britain’s Sunday Telegraph.
The two reactors, each with a capacity of 1.6 gigawatts, would together make up five per cent of British generating capacity and increase energy security in the country, which needs to replace 20 per cent of its ageing, polluting power plants over the next decade.
EDF and the British Prime Minister’s office declined to comment on the media reports, but EDF said in a statement yesterday its CEO Henri Proglio would give details about the UK nuclear project in a web conference today. The project is a boost for the global nuclear industry, which has seen projects cancelled since the 2011 Fukushima disaster.
Germany decided to phase out nuclear power, Italy scrapped a planned nuclear programme and France has pledged to cut atomic power to 50 per cent of its electricity mix from 75 per cent today.
Britain’s government and main opposition parties support nuclear power and anti-nuclear sentiment among the population is muted by comparison with other parts of Europe.
Country’s first nuclear construction since Fukushima
George Borovas, nuclear specialist at law firm Pillsbury, said Britain is a unique environment for nuclear, given political support, a relatively strong economy and an existing nuclear fleet.
Two other groups have put forward plans to build new nuclear plants in Britain and will be scrutinising the EDF deal closely: Japan’s Hitachi via its Horizon project and the NuGen project of France’s GDF and Spain’s Iberdrola.