The French state electricity giant building Britain’s new nuclear power plant was accused by environmentalists yesterday of a gross underestimation of the cost of atomic energy. Greenpeace claimed that if EDF disclosed the true cost of running a fleet of reactors in France while financing two new ones in the UK, it would be declared bankrupt. The allegation was made after Greenpeace commissioned an audit by AlphaValue, the equity research company. The claims were denied by EDF, which said its accounts had been certified by official auditors. A source close to the company said that Greenpeace was an unreliable critic because of its anti-nuclear stance. The report fed into longstanding concerns in France over EDF’s financial solidity. The French government has agreed to inject 3 billion euros into the group this year and has renounced dividend payments until next year. Shares in EDF, in which the French state has an 85 per cent stake, have lost almost a third of their value in the past year and the company is no longer listed on the Paris blue-chip index. The AlphaValue report described EDF as an “uncompetitive firm . . . incapable of reacting rapidly and efficiently to the variations in electricity needs and the changes created by the liberalisation of . . . European markets”. It said that EDF’s rivals had written down the value of their nuclear plants because of the move to renewable energy and the fall in electricity prices and that EDF had failed to follow suit. Juan Camilo Rodriguez, author of the report, said the company was likely to have to close 17 of its 58 French reactors to meet the government’s requirement that nuclear power should provide 50 per cent of the nation’s electricity in 2025, down from 75 per cent now. “The provisions to safeguard the burden of financing the decommissioning of the French reactors are far from sufficient. [If 17 are closed], the group should increase its provisions by more than 20 billion euros.” Mr Rodriguez said the cost of handling nuclear waste added at least 33.5 billion to that figure. “Whatever scenario is retained, an adjustment of the nuclear provisions . . . would lead to the bankruptcy of EDF from an accountancy point of view,” he added. The report said that EDF would need to find a further 165 billion during the next decade to finance projects such as Hinkley Point and the renovation of reactors in France. EDF says it will spend 51 billion renovating its reactors and £12 billion on Hinkley Point. A spokesman for EDF accused AlphaValue of making erroneous calculations that failed to take account of long-term electricity price movements and differences between France and other European markets.
Times 18th Nov 2016 read more »
France’s power giant EDF has “drastically” under-budgeted the cost of dismantling its old reactors and investing in new projects such as a contested British nuclear plant, a Greenpeace-commissioned study said Thursday. The amount of under-budgeted costs for state-controlled EDF to take old reactors out of commission and deal with waste disposal is evaluated at between 57.3 and 63.4 billion euros in 2025 ($61.3 – $67.8 billion), the study said. This is more than double the current value of the company, which is nearly 25 billion euros, said the report’s authors, financial analysis firm AlphaValue.
Expatica 17th Nov 2016 read more »
[Machine Translation] “EDF asphyxiated by nuclear,” according to a study for Greenpeace. Power plants “probably” overvalued and dismantling and waste management costs “drastically” undervalued: a study by the financial analysis firm AlphaValue, commissioned by Greenpeace, tightens EDF’s nuclear strategy and its financial situation. According to the study published on Thursday, entitled “EDF asphyxiated by nuclear”, “the main concern” for the electrician concerns “under-provisioning” of the costs of reactor dismantling and waste management. AlphaValue estimates that “global underfunding is valued between € 57.3 and € 63.4 billion in 2025”, well above the Group’s current equity of around € 25 billion.
Ouest France 17th Nov 2016 read more »
[Machine Translation] A study commissioned by the NGO, and challenged by EDF, estimates that it lacks at least 50 billion euros in the caisses to face the wall of investments looming. “EDF asphyxiated by nuclear power”: Greenpeace has chosen its moment to send a new Scud to its best enemy. The environmental NGO publishes this Thursday an alarming study on what it considers to be the reality of the financial accounts of the operator of the 19 French nuclear power plants. According to the audit conducted by the financial analysis firm AlphaValue at Greenpeace’s request, the electrician overestimates its power stations considerably and drastically underestimates the cost of the provisions necessary for the dismantling of its nuclear installations and the management of waste, While it faces an investment wall by 2025.
Liberation 17th Nov 2016 read more »