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Released October 09, 2014 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Europe has cleared the way for the first nuclear power plant to be built in the U.K. for 20 years.
After a lengthy investigation, the European Commission ruled that the U.K.'s agreement with French energy giant Electricite de France (EPA:EDF) (EDF) (Paris) to offer a guaranteed electricity price for 35 years at the Hinkley Point C nuclear project did not breach E.U. state aid rules. The decision means that EDF likely will move ahead and make a final investment decision to get the 3,300-megawatt project off the ground. It will use two European Pressurized Reactors (EPRs), which will be capable of generating enough power for 5 million homes--about 7% of the U.K.'s total electricity demand when the plant is commissioned in 2018. The project will be overseen by Nuclear New Build (NNB) Generation Company (NNB GenCo), which was formed by EDF.
The Commission said: "Today the Commission has decided that the State aid included in the U.K. modified proposal to subsidise the construction and operation of a new nuclear power plant at Hinkley Point is compatible with State Aid rules. This decision is the outcome of an in-depth investigation into this project started in December last year. After the modifications that U.K. authorities have agreed to introduce in the original proposal, the Commission has found that the state aid granted will not lead to undue distortions of competition in the Single Market, and is therefore compatible with EU state aid rules."
Commission Vice-President Joaquín Almunia, in charge of competition policy, explained: "After the Commission's intervention, the U.K. measures in favour of Hinkley Point nuclear power station have been significantly modified, limiting any distortions of competition in the Single Market. These modifications will also achieve significant savings for U.K. taxpayers. On this basis and after a thorough investigation, the Commission can now conclude that the support is compatible with EU state aid rules."
Industrial Info reported on leaked reports weeks ago that the the E.C. was going to give the project the green light. For additional information, see September 29, 2014, article - E.U. to Clear Hinkley Point Nuclear Project in U.K.
The U.K.'s Energy and Climate Change Secretary, Ed Davey, welcomed the decision.
"This is an important next step on the road to Britain's first new nuclear power station in a generation. While there is much work still to do before a final contract can be signed, today's announcement is a boost to our efforts to ensure Britain has secure, affordable, low-carbon electricity in the 2020s. After a thorough, detailed and independent analysis of our proposed project with EDF, this decision shows the European Commission agrees that this is a good deal for consumers and enables us now to proceed to the next stage."
The U.K. badly needs some positive nuclear related news at present. In August, EDF announced the sudden shutdown of four reactors after a fault was discovered at a boiler spine at Unit 1 of its Heysham 1 nuclear power plant in Lancashire, England. For additional information, see August 12, 2014, article - EDF Shuts Four U.K. Nuclear Reactors.
This week, the company was quenching fears about nuclear risks to the public after cracks were found in some graphite bricks at the Hunterston B nuclear plant during a scheduled services and maintenance outage. For additional information, see October 8, 2014, article - Cracks at U.K. Nuclear Plant 'No Threat.'
View Project Report - 300009866 300084758
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
After a lengthy investigation, the European Commission ruled that the U.K.'s agreement with French energy giant Electricite de France (EPA:EDF) (EDF) (Paris) to offer a guaranteed electricity price for 35 years at the Hinkley Point C nuclear project did not breach E.U. state aid rules. The decision means that EDF likely will move ahead and make a final investment decision to get the 3,300-megawatt project off the ground. It will use two European Pressurized Reactors (EPRs), which will be capable of generating enough power for 5 million homes--about 7% of the U.K.'s total electricity demand when the plant is commissioned in 2018. The project will be overseen by Nuclear New Build (NNB) Generation Company (NNB GenCo), which was formed by EDF.
The Commission said: "Today the Commission has decided that the State aid included in the U.K. modified proposal to subsidise the construction and operation of a new nuclear power plant at Hinkley Point is compatible with State Aid rules. This decision is the outcome of an in-depth investigation into this project started in December last year. After the modifications that U.K. authorities have agreed to introduce in the original proposal, the Commission has found that the state aid granted will not lead to undue distortions of competition in the Single Market, and is therefore compatible with EU state aid rules."
Commission Vice-President Joaquín Almunia, in charge of competition policy, explained: "After the Commission's intervention, the U.K. measures in favour of Hinkley Point nuclear power station have been significantly modified, limiting any distortions of competition in the Single Market. These modifications will also achieve significant savings for U.K. taxpayers. On this basis and after a thorough investigation, the Commission can now conclude that the support is compatible with EU state aid rules."
Industrial Info reported on leaked reports weeks ago that the the E.C. was going to give the project the green light. For additional information, see September 29, 2014, article - E.U. to Clear Hinkley Point Nuclear Project in U.K.
The U.K.'s Energy and Climate Change Secretary, Ed Davey, welcomed the decision.
"This is an important next step on the road to Britain's first new nuclear power station in a generation. While there is much work still to do before a final contract can be signed, today's announcement is a boost to our efforts to ensure Britain has secure, affordable, low-carbon electricity in the 2020s. After a thorough, detailed and independent analysis of our proposed project with EDF, this decision shows the European Commission agrees that this is a good deal for consumers and enables us now to proceed to the next stage."
The U.K. badly needs some positive nuclear related news at present. In August, EDF announced the sudden shutdown of four reactors after a fault was discovered at a boiler spine at Unit 1 of its Heysham 1 nuclear power plant in Lancashire, England. For additional information, see August 12, 2014, article - EDF Shuts Four U.K. Nuclear Reactors.
This week, the company was quenching fears about nuclear risks to the public after cracks were found in some graphite bricks at the Hunterston B nuclear plant during a scheduled services and maintenance outage. For additional information, see October 8, 2014, article - Cracks at U.K. Nuclear Plant 'No Threat.'
View Project Report - 300009866 300084758
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
