Areva, the French nuclear reactor manufacturer, aims to dominate the next wave of UK nuclear power generation after receiving government assurances that its goal of supplying the technology for all the nation’s new reactors would not breach competition rules.
Anne Lauvergeon, chief executive of the company which has already won pledges of support from energy companies EDF and Eon, told the Financial Times the UK was now “the most exciting place in Europe” for nuclear. Areva had been “very impressed by the decisions taken by the British government over a short period of time, over the last two years, to restart nuclear investment in Great Britain”, she said.
The scale of Areva’s ambitions will dismay rival reactor manufacturers Westinghouse, sold in 2006 by the government to Toshiba, and General Electric of the US.
Her comments are disclosed just days before John Hutton, business secretary, hosts a meeting of nuclear power executives from Europe, the US and Japan where he will outline Britain’s regulatory framework as he seeks to attract the multi-billion pound investment required to build a new generation of reactors.
Underlining her belief that putting Areva’s technology in every reactor in the UK would not stifle competition, Ms Lauvergeon cited the example of Belgium, where rivals EDF and Suez both operated Areva-designed nuclear reactors but achieved different results.
“You can have exactly the same technology but still have competitive advantage because of how you use it.”
That both EDF and Eon say they will use Areva technology for new nuclear power stations in the UK demonstrated as much, she said, “as EDF and Eon are very strong competitors”.
EDF, which, like Areva, has the French government as its controlling shareholder, has backed Areva’s EPR reactor design for any new nuclear plants it builds in the UK. But Eon’s announcement in April that it also planned to use the EPR was a particular blow to Westinghouse.
The UK government, which has been increasingly vocal in its support of a new wave of nuclear construction, wants to see a number of players in the market, both in terms of plant operators and reactor technology.
Safety regulators are scrutinising three different reactor designs to see if they are suitable for use in the UK; Areva’s EPR, Westinghouse’s AP1000, and GE Hitachi’s ESBWR.
It is expected that at least two reactor designs will be granted a UK licence, giving companies a choice of technology. The government will leave the decision of which reactor to use to the private sector and says it will not be a problem if all the companies chose the same design.
Ms Lauvergeon said that, as well as EDF and Eon, Areva was “in discussions with other players about being in exclusivity with them” on building new nuclear plants in the UK.
EDF has said it is confident it can have the first new reactor up and running by the end of 2017.
Ms Lauvergeon is less optimistic that it can be done. “Theoretically, yes, but it depends on [reactor design] licensing issues and timing of decisions by the utilities.”
She said the pace of nuclear development in the UK would also depend on whether UK regulators were prepared to accept the designs Areva was using to build reactors in Finland and France or whether they demanded modifications.
“If the British system reinvents the wheel, with different rules and different specifications, of course it will take time and it will mean a lot of money,” she warned.
Ms Lauvergeon indicated that standardisation of reactor design would be crucial not only for companies operating nuclear plants in several countries but for consumers. “If you want the lowest cost of electricity, you need to be careful on this.”