Electricite de France SA is “uninvestable” as the French government encourages the state-controlled power company to proceed with the 18 billion-pound ($26 billion) Hinkley Point atomic plant in the U.K. without doing enough to strengthen its finances, RBC Capital Markets said. The government, which owns 85 percent of EDF, should “consider re-nationalizing” the utility if it pushes Hinkley Point forward as the project’s political dimension makes the stock too risky for minority shareholders, Martin Young, an analyst at RBC, said Monday in a note to investors. EDF Chief Executive Officer Jean-Bernard Levy sought to reassure employees last week, saying the company is negotiating with the French state “to obtain commitments allowing us to secure our financial position.” “EDF needs a meaningful action plan to secure its own future,” Young said, citing the need to cut costs and sell assets to narrow the company’s focus. “EDF’s management should not risk bringing the company to its knees, and should not proceed with Hinkley Point.”
Bloomberg 14th March 2016 read more »
Kallanish Energy 16th March 2016 read more »
East Devon businesses are being urged to act now and find out about the opportunities on offer when EDF Energy and its partner investors are expected to start the multi-billion construction of Hinkley Point C, the first new nuclear power station for a generation. Such a large scale project will require a diverse range of goods, services and materials ranging from construction services, mechanical and electrical equipment to catering, accommodation and transport services.
East Devon District Council 14th March 2016 read more »
The plant is supposed to start operations in 2025, when several older nuclear sites are decommissioned and the deadline hits for shutting down coal plants. Tony Roulstone, a professor setting up the University of Cambridge’s new MPhil in nuclear energy, believes the project will take ten years to construct, and given work isn’t expected to start until 2018 or 2019, will miss its deadline. “This will put the UK in a difficult position because they were counting on electricity from Hinkley by 2025,” Roulstone said. “If you follow these policies then a gap is likely,” explained Jennifer Baxter, head of energy and environment at the Institution of Mechanical Engineers. “What is not clear is how long extensions to current nuclear and coal fired power stations will be [able] to account for the lack of new build power stations.” Roulstone noted that the new plant’s construction cost is the same as EDF’s capitalisation. “Only major sales of assets and/or funding by the French government can rescue EDF and hence Hinkley,” he said.
Motherboard 15th March 2016 read more »