Britain is set to sign a deal with France's EDF for the first nuclear plant to start construction in Europe since Japan's Fukushima disaster raised safety concerns world-wide, at a cost estimated at around $23 billion. Under the deal, expected to be announced on Monday, the French utility will lead a consortium, including a Chinese group, to construct two European Pressurised Water Reactors (EPRs) designed by France's Areva. Industry estimates, based on other nuclear projects, put the cost at around 14 billion pounds or more than 16 billion euros.
EDF's long-time partner China General Nuclear Power Group (CGN), possibly in combination with China National Nuclear Corporation (CNNC), is expected to have a 30 to 40 percent stake in the consortium, with Areva taking another 10 percent, according to newspapers including France's Les Echos and Britain's Sunday Telegraph.
EDF and the British prime minister's office declined to comment on the media reports.
The two reactors, each with a capacity of 1.6 gigawatts, would together make up nearly five percent of British generating capacity and increase energy security in the country, which needs to replace 20 percent of its ageing and polluting power plants over the coming decade.
The project is a boost for the global nuclear industry, which has seen projects cancelled since the 2011 Fukushima disaster.
Germany decided to phase out nuclear power, Italy scrapped a planned nuclear programme and France has pledged to cut atomic power to 50 percent of its electricity mix from 75 percent today.
Britain's government and main opposition parties support nuclear power and anti-nuclear sentiment among the population is muted by comparison with other parts of Europe. George Borovas, nuclear specialist at law firm Pillsbury, said Britain is a unique environment for nuclear, given political support, a relatively strong economy and an existing nuclear fleet.
"If nuclear can't work in the UK, where else?" he said.
Two other groups have put forward plans to build new nuclear plants in Britain and will be scrutinising the EDF deal closely: Japan's Hitachi via its Horizon project and the NuGen project of France's GDF and Spain's Iberdrola. Under the deal, the EDF-led consortium will build the two reactors at its own risk, but the government will guarantee a minimum price for power generated from the proposed Hinkley Point C plant in Somerset, south-west England, adjacent to an existing nuclear power plant run by EDF. EDF operates 15 nuclear reactors in the UK following its 12.5 billion pound take-over of British Energy in 2008-2009.
The so-called strike price, over which EDF and Britain have wrangled for more than a year, is expected to be set at about 92 pounds per megawatt-hour, more than twice current market levels, and could be valid for 35 years, according to some media.
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