EDF Energy puts nuclear power sites up for sale
Monday 11 May 2009
 |
| Heysham in Lancashire is one of the two sites that EDF could sell |
EDF Energy has started its process to sell one of its nuclear power sites, as part of its deal with the competition authorities to buy British Energy.
Starting on Friday, prospective buyers were being asked to express a formal interest in either land at Heysham, Lancashire, or at Dungeness in Kent.
EDF Energy wants only "credible" nuclear operators to come forward as buyers, with the successful bidder ultimately deciding which of the two sites EDF Energy will sell.
Among companies that could be interested will be the consortium of energy utilities GDF Suez, Iberdrola and Scottish and Southern Energy, which missed out in the auction of nuclear sites in Essex, Gloucestershire and Anglesey last month (see this New Energy Focus story).
The sites at Heysham and Dungeness have been formally nominated as part of the government's nuclear site selection process, which is open to public consultation until next week.
EDF said it would only sell to an organisation that already operates a nuclear power plant somewhere else in the world.
The prospective buyer must also operate an electricity generating station that is subject to UK regulations - or be committed to doing so.
Humphrey Cadoux-Hudson, managing director for EDF Energy's nuclear new build division, said: "We believe these sites have good potential for new build and will be attractive to potential developers of nuclear power plants.
"This is an important step towards government's objective of competition in new nuclear build in the UK. It goes hand in hand with our own plans to build and operate four EPRs in the UK with the first operational by the end of 2017 as we seek to help address the country's long-term energy issues."
The energy giant is being forced to sell a site by the EU Commission and to suit UK government intentions to have more than one company operating new nuclear plants in this country.
EDF said it would allow the purchaser to carry out site investigations before reaching a decision, and clarified that the land sale will not affect the operations of the existing nuclear power plants at Heysham and Dungeness. The plants will continue to be operated by British Energy as part of EDF Energy.
The government has hinted that it wants to see around eight new nuclear power plants build in Britain, and the locations most favoured by industry are generally at or next to existing or former nuclear power sites.
Centrica buys into British Energy
EDF Group has agreed to sell 20% of its British Energy nuclear subsidiary to Centrica for £2.3 billion, the companies announced today.
As well as taking a stake in British Energy’s existing eight nuclear power plants, Centrica will join EDF’s nuclear newbuild efforts in a 80/20 joint venture. The deal will see Centrica provided with 18TWh of power by EDF from 2011, while Centrica will hand over to EDF a 51% stake in its Belgian power division SPE for £1.2 billion.
Roger Carr, chairman of Centrica, said: "The deal represents good value for Centrica shareholders, improves the strategic balance of our business and further underpins our green energy credentials."
EDF, which provides power to a quarter of the country, has already agreed to sell its land at Wylfa on Anglesey to a joint venture between E.ON UK and RWE npower under last month's auction process.
During the same auction process involving the Nuclear Decommissioning Authority, the French power company also bought land at Bradwell in Essex, next to land it already owns.
GDF/Iberdrola/SSE
After missing out on last month's nuclear site sale, the consortium of French firm GDF Suez, Spanish firm Iberdrola and also Scottish and Southern Energy confirmed it was still committed to building nuclear power plants in the UK.
It said in a statement that it would be examining a "number of opportunities for other potential sites".
Along with either Heysham or Dungeness, the site at Sellafield in Cumbria will be available for nuclear development, with the Nuclear Decommissioning Authority expected to begin an auction for the land soon.
The statement from the GDF/Iberdrola/SSE consortium said: "The consortium firmly believes that the scope for nuclear development in the UK will involve several leading players, in line with the position set out by the UK Government. In this context, the unique combination of nuclear know-how and knowledge of the UK market should give the consortium the ability to take a leading role in new nuclear developments in the UK."
Print
