Nuclear power in Europe

BERLIN, Feb 12, 2010 (IPS) – The enormous technical and financial risks involved in the construction and operation of new nuclear power plants make them prohibitive for private investors, rebutting the thesis of a renaissance in nuclear energy, say several independent European studies.

The risks include high construction costs, likely long delays in building, extended periods of depreciation of equipment inherent to the construction and operation of new power plants and the lack of guarantees for prices of electricity. (more…)

OLKILUOTO, Finland — As the Obama administration tries to steer America toward cleaner sources of energy, it would do well to consider the cautionary tale of this new-generation nuclear reactor site.

The massive power plant under construction on muddy terrain on this Finnish island was supposed to be the showpiece of a nuclear renaissance. The most powerful reactor ever built, its modular design was supposed to make it faster and cheaper to build. And it was supposed to be safer, too. (more…)

Energy firms will refuse to pass on all of the savings they make on cheaper wholesale gas and electricity to consumers, one of the UK’s top energy bosses admitted this weekend.

The warning, issued by Paul Golby, chief executive of Eon UK, came after a week in which the price of oil tumbled to just above $40 a barrel. As the government demands that the banks give borrowers the benefit of the latest cut in interest rates, energy companies are also coming under increasing pressure to cut customers’ bills. (more…)

Barely a few days before the collapse of Lehman Brothers, EDF finally clinched its multi-billion pound acquisition of British Energy. At about the same time, the French state-controlled electricity group also tried – and failed – to counter veteran investor Warren Buffett’s bid for control of a US electricity utility, Constellation Energy. (more…)

European energy markets are likely to have a difficult wake-up once the recession is over if essential infrastructure investments are delayed, consultancy firm Capgemini said Monday.

“The credit crunch should short-circuit the investment cycle, leading to a lack of generation capacities and infrastructures,” it said in its tenth European Energy Markets Observatory report. (more…)

PARIS, Nov 24 (Reuters) – French atomic energy firms may be over-confident when they say their plans to expand abroad will survive the credit crisis unscathed.

Some analysts say financing problems, if prolonged, are bound to delay schemes in a sector with such high capital costs.

France hopes to use its unrivalled atomic expertise to lead a global nuclear revival spurred by rising fossil fuel prices and concerns over climate change. Its firms may even benefit as a slowing economy lowers costs for current building in France. (more…)

The international financial crisis, whose impact is felt in Romania, could trigger a rise in the costs with the manpower, and a fall in the demand of nuclear energy, said, on November 12, general manager of Nuclearelectrica Teodor Chirica, at a forum on “Energy in Central and Eastern Europe.”

“The international financial crisis will affect, somehow, the field of nuclear energy. So, the costs with the manpower will increase, and the demand of energy will decline,” said Chirica. (more…)

Sofia. German company RWE will from now on decide whether to grant the investment promised.
The signing of the shareholding contract for Belene nuclear power plant through which German company RWE will gain 49% of the future plant’s stakes, was postponed. Instead of end-October 2008 when the last deadline expired, the paper will most likely be endorsed in December 2008, the project’s main investor National Electricity Company (NEC) said, The Banker Weekly reported. (more…)

PARIS, Nov 4 (Reuters) – The seven banks guaranteeing a loan to help French power company EDF finance the takeover of British Energy are struggling to find additional banks to share the risk, Les Echos reported on Tuesday.

EDF last month launched an 11 billion pound ($17.9 billion) loan backing the 12.5 billion pound acquisition with BNP Paribas, Societe Generale, Calyon, HSBC 005.HK, Royal Bank of Scotland, Barclays Capital and Bank of Tokyo Mitsubishi. The loan was conservatively structured with short-term maturities and generous pricing after EDF’s bid was recommended by British Energy’s board in September. (more…)

BANDIRMA, Turkey, Oct 22 (Reuters) – Energy import-dependent Turkey is pressing ahead with large energy investments despite global financial woes and ongoing private sector projects will raise capacity to 62,600 megawatts from 40,000 MW.

Turkey, a major energy importer, is under pressure to increase power capacity and liberalise the sector in the face of sharply rising demand, fuelled by economic growth and a rapidly growing population.
However, the shrinking global liquidity and lessening risk appetite generated by the financial crisis has raised concerns about companies’ ability to raise the necessary funding and uncertainty surrounds some projects. (more…)