ENEL and EDF Move Toward First Biddings for Nuclear Projects in Italy

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Researched by Industrial Info Resources (Sugar Land, Texas)--On January 19, 2010, major Italian utility Enel SpA (BIT:ENEL) (Rome), in partnership with Electricite de France SA (EPA:EDF) (EDF) (Paris, France), started a market survey to evaluate the abilities of the Italian firms involved in the electronuclear technology industry. This is the first step toward the tender process that will be held for the construction of at least four Areva EPR-1600 reactors in Italy, after 23 years of prohibition of nuclear energy production.

This survey, which is being conducted online at Enel's website, will last until July 2010, when the evaluation of interested firms begins. The technical, financial and legal qualification of firms will take about a year until the release of the first bidding documents in the second quarter of 2011.

The tenders will be by invitation among the qualified firms and will follow a supply chain similar to the one used in the Flamanville III project in France. The activities of the project will be divided into four main components: the nuclear steam supply system, the balance of the nuclear island, the construction of the conventional island, and the balance of plant for the conventional island.

Areva SA (EPA:CEI) (Paris) will provide technology for the nuclear steam supply system. The contractors in charge of the remaining components will be selected by Enel and EDF. Enel and EDF will act as architect-engineer on the project.

By the end of 2008, the Italian government announced plans for the return of nuclear power generation to the country by 2020. In February 2009, Enel and EDF signed a memorandum of understanding for the construction of at least four 1,600-megawatt reactors at three locations that have not been identified yet.

In August 2009, the two companies formed a 50:50 joint venture known as Sviluppo Nucleare Italia Srl (Rome) for the elaboration of the feasibility studies of such plants. Enel and EDF will form different joint venture companies for the construction and operation of each reactor. Construction of the first reactor is expected to begin in July 2015, with operations expected to begin July 2020.

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