The latest commissioning delay at CGN Power’s Taishan nuclear station in southern China – the third in two years – will lead to a deferral of around $770m (€638m) in annual revenues and potentially more cost overruns, according to ratings agency Moody’s. CGN said on 31 December 2017 that Taishan-1 has been delayed to the second half of 2018 and Taishan-2 to 2019, from the second half of 2017 and the first half of 2018 respectively. Construction of the two Generation III EPR units, which are likely to become the first units of their type to begin commercial operation, began in 2009 and 2010. In a note to investors today, Moody’s said the delays reflect concerns over the high execution risk for CGN in rolling out its aggressive expansion target and its adoption of a new generation of nuclear technology. Moody’s said the EPR technology, supplied by France’s Areva, has been experiencing delays and cost overruns. As of the end of 2017, there had been no instance of third-generation nuclear power generating technology, including the EPR, in commercial operation. In February 2017 CGN had already announced a six-month delay in launching the Taishan EPR units. Moody’s said it expects the two units to contribute around $770m in annual revenue upon their complete commencement, equivalent to around 7% of CGN’s 2016 revenue.
Nucnet 2nd Jan 2017 read more »
CGN Power’s latest project delay deals another blow to China’s nuclear energy ambition. China’s largest nuclear reactor and builder delays commissioning of the first unit to later this year. The latest commissioning delay at CGN Power’s nuclear project in Taishan, in Guangdong province – the third in two years – will lead to a further deferral of 5 billion yuan (US$770 million) in annual revenues and potentially more cost overruns, according to ratings agency Moody’s. The delay is another setback for China’s ambitious development programme, which aims to raise its installed nuclear power capacity to 58 gigawatts by the end of 2020 from 34.73GW last year, and the world’s hopes for a successful launch of third-generation nuclear reactors. “The delays reflect our concerns over the high execution risk for CGN in rolling out its aggressive expansion target and its adoption of a new generation of nuclear technology,” Ada Li, senior analyst at Moody’s, wrote in a note on Tuesday. CGN said on Friday the first two generating reactors of the plant in Taishan – 136 kilometres west of Hong Kong – has been delayed to 2018 and 2019, from the second half of 2017 and the first half of 2018 respectively.
South China Morning Post 2nd Jan 2017 read more »
The Taishan 1 EPR has finished the hot functional tests of its commissioning and will be the first EPR to operate, owner Chine General Nuclear (CGN) announced to the Hong Kong stock exchange. However, being first meant extra tests are required and this prevented Taishan 1 from starting up at the end of 2017, the company said.
World Nuclear News 2nd Jan 2018 read more »
Moody’s Investors Service says China General Nuclear Power Corporation’s (CGN, A3 stable) delays in launching its European Pressurized Reactor (EPR) units in Taishan are credit negative. “The delays reflect our concerns over the high execution risk for CGN in rolling out its aggressive expansion target and its adoption of a new generation of nuclear technology,” says Ada Li, a Moody’s Vice President and Senior Analyst. “The delays also imply the deferral of cash flows from the two nuclear units and potential additional capex, which would further pressure CGN’s financial metrics,” adds Li.
Moodys 2nd Jan 2017 read more »