News October 2013

31 October 2013

Hinkley

Based on the disclosure so far this looks likely to be an outstanding deal for Edf and its partners. On a leveraged basis we expect Edf to earn a Return on Equity (ROE) well in excess of 20% and possibly as high as 35%. We forecast that cash dividends of between £65bn to £80bn should be payable during the life of the Cfd. Note that paying these dividends would still allow Edf to pay off all construction debt within the …

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30 October 2013

Hinkley

The Hinkley Point C nuclear power station is, or was, subject to two challenges. The first is from An Taisce, the Irish counterpart to the National Trust, who have challenged on the ground that the Irish government should have been consulted on transboundary effects as part of environmental impact assessment (EIA). This is due to be heard on 5 December in the High Court in London. The United Nations is taking an interest in this as well, because the EIA …

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29 October 2013

New Nukes

The government has given the green light to building the first new nuclear power plant in a generation. But while many have welcomed the move away from fossil fuels, there remain concerns about cost, safety and ownership of the plants. Columnist Simon Jenkins debates the issue with Craig Bennett, director of policy at Friends of the Earth.

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28 October 2013

Hinkley: A Huge Contribution Towards Yesterday’s Energy Thinking

The Government’s plan to guarantee EDF Energy an index-linked price for electricity from two new nuclear reactors at Hinkley Point C in Somerset at roughly double the current market rate has, unsurprisingly, gone down like a lead balloon. As we head into another winter with rising energy prices already becoming the latest political battleground, we can expect around 24,000 avoidable deaths from cold-related illnesses in England and Wales alone (1) and seven million households plunged into fuel poverty. (2) So …

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28 October 2013

Hinkley

Letters: As Fukushima continues to turn into an ever more serious catastrophe, and as the Germans confirm that they are turning their back on nuclear, Britain decides it will be expanding nuclear power generation, with the Chinese as the driving force.

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27 October 2013

Hinkley

Tom Burke: Mr Davey. If there is no public subsidy for Hinkley C why are you having to make an application to the Brussels for state aid clearance? The most important decision in this issue is EDF’s decision to order the major components for Hinkley. Only when that has happened will it become too expensive not to go ahead. If that has not been done, no deal has actually been made. All that has happened is that the price the …

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26 October 2013

Hinkley

EDF will not give the go ahead for contractors to build its £16bn Hinkley nuclear power plant until the deal it has struck with the government has received state aid clearance from Brussels, which could several months or even a year. EDF announced this week that it had finally reached an agreement with the government for a guaranteed price for its electricity from the plant, with the deal widely seen as opening the door to a new generation of nuclear …

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25 October 2013

Hinkley

A director at the UK’s leading solar power generator Lightsource Renewable Energy has written to Prime Minister David Cameron describing how the UK PV sector could match the capacity of the planned nuclear power station at Hinkley within just two years. Operations Director Mark Turner says the nation’s solar industry has the capability to deliver the same energy production at Hinkley Point C within 24 months and at comparable cost.

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24 October 2013

Hinkley

The government’s announcement yesterday of an eye-watering £92.50 strike price is nothing more than ‘grandstanding’ according to campaigners in the south west. Nikki Clark, Stop Hinkley spokesperson said “Yesterday’s announcement was much ado over nothing and despite all the fanfare and visits of the rich and famous to Hinkley, there is no legally binding agreement, nor will there be until the government get their plans past the European Commission which, according to various media outlets, would be summer 2014 at …

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23 October 2013

Hinkley

To ensure the future of its nuclear power industry, the U.K. is relying on an unproven reactor design plagued by delays and billions in budget overruns. The government’s deal yesterday with Electricite de France SA to build a $26 billion plant at Hinkley Point in England involves two European Pressurized Reactors. The first EPR project in Finland, led by Areva SA, the French company that designed the technology, is seven years behind schedule and won’t be completed until 2016. The …

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