This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.nytimes.com/2013/10/22/business/international/britain-and-edf-sign-nuclear-plant-deal.html
The article has changed 7 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Britain and EDF Sign Nuclear Plant Deal | Britain and EDF Sign Nuclear Plant Deal |
| (about 1 hour later) | |
| LONDON — The British government and EDF Group, the French state-controlled utility, announced on Monday that they had reached a long-elusive agreement to build the first nuclear power station in Britain in a generation, at Hinkley Point in southwest England. | LONDON — The British government and EDF Group, the French state-controlled utility, announced on Monday that they had reached a long-elusive agreement to build the first nuclear power station in Britain in a generation, at Hinkley Point in southwest England. |
| The overall costs would be 16 billion pounds in 2012 terms, or about $26 billion, with consumers and taxpayers covering most of the bill. EDF will be guaranteed a price of between 89.5 pounds per megawatt hour and 92 pounds per megawatt hour for 35 years, depending on whether it later goes ahead with another plant called Sizewell C that might reduce costs. The British government will guarantee 65 percent of the upfront cost of the Hinkley Point plants. | The overall costs would be 16 billion pounds in 2012 terms, or about $26 billion, with consumers and taxpayers covering most of the bill. EDF will be guaranteed a price of between 89.5 pounds per megawatt hour and 92 pounds per megawatt hour for 35 years, depending on whether it later goes ahead with another plant called Sizewell C that might reduce costs. The British government will guarantee 65 percent of the upfront cost of the Hinkley Point plants. |
| EDF says it expects to make a return on investment of about 10 percent. | EDF says it expects to make a return on investment of about 10 percent. |
| Two Chinese companies, China General Nuclear Corporation and China National Nuclear Corporation, will take a stake of 30 percent to 40 percent in Hinkley Point. According to EDF, which is working with the two Chinese companies on nuclear power stations in China, the companies will be “strategic and industrial partners” in the project and will be given the “opportunity to gain experience in the U.K. and will support their long-term objective of becoming leading developers in the U.K.” | |
| Areva, the French nuclear designer and builder, will take a 10 percent stake and will do key work on the project, including the nuclear steam supply system and instrumentation. EDF said discussions were under way with other parties that could take up to 15 percent of the equity. EDF says it probably will wind up with a 45 percent to 50 percent stake. | Areva, the French nuclear designer and builder, will take a 10 percent stake and will do key work on the project, including the nuclear steam supply system and instrumentation. EDF said discussions were under way with other parties that could take up to 15 percent of the equity. EDF says it probably will wind up with a 45 percent to 50 percent stake. |
| EDF says the deal faces hurdles. A final contract with full investment decisions needs to be signed. In addition, EDF says, the European Commission needs to decide whether the terms contract violate European rules on state aid. | EDF says the deal faces hurdles. A final contract with full investment decisions needs to be signed. In addition, EDF says, the European Commission needs to decide whether the terms contract violate European rules on state aid. |
| The Hinkley Point project represents an attempt by the British government to bolster the domestic energy industry. The government wants several other plants to be built to replace Britain’s aging nuclear stations, including at least one other plant operated by EDF. One goal is that building several plants will create economies of scale and the opportunity to learn, lowering costs. In the past, Britain has built plants piecemeal, raising the costs. | The Hinkley Point project represents an attempt by the British government to bolster the domestic energy industry. The government wants several other plants to be built to replace Britain’s aging nuclear stations, including at least one other plant operated by EDF. One goal is that building several plants will create economies of scale and the opportunity to learn, lowering costs. In the past, Britain has built plants piecemeal, raising the costs. |
| The government says that up to 57 percent of the work on the plant may go to British companies and that 25,000 jobs could be created at the peak of the construction phase and 900 permanent jobs during the plant’s expected 60 years of operation. | The government says that up to 57 percent of the work on the plant may go to British companies and that 25,000 jobs could be created at the peak of the construction phase and 900 permanent jobs during the plant’s expected 60 years of operation. |
| The roughly 90 pounds per megawatt hour is about double the cost of wholesale electricity currently charged by generators, and the amount is expected to spark debate over British taxpayers subsidizing nuclear power. | The roughly 90 pounds per megawatt hour is about double the cost of wholesale electricity currently charged by generators, and the amount is expected to spark debate over British taxpayers subsidizing nuclear power. |
| Household energy prices are in the spotlight after big power companies like British Gas recently announced price increases. On Sunday, the archbishop of Canterbury, Justin Welby, called on the companies to justify the increases, citing the hardship for consumers. Last month, the Labour Party leader, Ed Miliband, called for a freeze on energy prices. | Household energy prices are in the spotlight after big power companies like British Gas recently announced price increases. On Sunday, the archbishop of Canterbury, Justin Welby, called on the companies to justify the increases, citing the hardship for consumers. Last month, the Labour Party leader, Ed Miliband, called for a freeze on energy prices. |
| The negotiations over the Hinkley Point plant have been long and difficult. Originally, EDF, which already operates 15 nuclear plants in Britain, had intended to be in partnership with Centrica, the owner of British Gas. But Centrica withdrew from discussions, saying the economic case for a partnership was not strong enough. | The negotiations over the Hinkley Point plant have been long and difficult. Originally, EDF, which already operates 15 nuclear plants in Britain, had intended to be in partnership with Centrica, the owner of British Gas. But Centrica withdrew from discussions, saying the economic case for a partnership was not strong enough. |
| While Germany wants to shut all of its nuclear plants by 2022 and shift almost entirely to wind and solar power by 2050, Britain is betting big on nuclear power. Though it is also pushing into production of shale oil and gas, Britain aims to cut greenhouse gas emissions in half by the mid-2020s in large part by renewing the older nuclear power plants. | While Germany wants to shut all of its nuclear plants by 2022 and shift almost entirely to wind and solar power by 2050, Britain is betting big on nuclear power. Though it is also pushing into production of shale oil and gas, Britain aims to cut greenhouse gas emissions in half by the mid-2020s in large part by renewing the older nuclear power plants. |
| China’s interest in the British nuclear industry signals a break from a mostly domestic focus. While China has engaged in extensive cooperation with Pakistan in nuclear power, its industry has mostly concentrated on an enormous building program at home. | China’s interest in the British nuclear industry signals a break from a mostly domestic focus. While China has engaged in extensive cooperation with Pakistan in nuclear power, its industry has mostly concentrated on an enormous building program at home. |
| If and when the new plant, Hinkley Point C, comes fully online, it will supply about 7 percent of Britain’s electricity demand. That would be enough power for six million homes, with the added benefit of no carbon emissions. | If and when the new plant, Hinkley Point C, comes fully online, it will supply about 7 percent of Britain’s electricity demand. That would be enough power for six million homes, with the added benefit of no carbon emissions. |
This article has been revised to reflect the following correction: | |
| Correction: October 21, 2013 | |
An earlier version of this article misstated the percentage of the stake that two Chinese companies, China General Nuclear Corporation and China National Nuclear Corporation, will take in a planned nuclear station in Britain. The companies will have a stake of 30 percent to 40 percent in Hinkley Point, not 35 percent to 40 percent. |