Futures Forum: Devolution for Devon and Somerset? >>> District Council to give Leader 'delegated authority to sign Devolution Bid' at extraordinary council meeting: Thursday 28th January
This bid is largely based on the promise of 'business opportunities' around the proposed nuclear power station at Hinkley Point in Somerset:
Futures Forum: Devolution for Devon and Somerset? >>> of Local Enterprise Partnerships, 'opportunites for East Devon' and 'competing for crumbs at Hinkley Point'.
This, say some commentators, would be at the expense of renewable technologies:
Futures Forum: Devolution for Devon and Somerset? >>> nuclear vs solar >>> centralism vs localism
However, the BBC has just reported that the deal may be off for the moment:
Decision on new nuclear power plant 'delayed'
- 27 January 2016
- Business
PA
Britain's first new nuclear power plant in decades could be delayed amid reports an EDF board meeting to decide whether to invest in Hinkley Point Power Station has been postponed.
The French energy firm's board was expected to meet on Wednesday to finalise the decision.
But French paper Les Echos and environmental group Greenpeace said the decision had now been delayed reportedly due to funding difficulties.
EDF declined to comment on the reports.
In October, EDF agreed a deal under which China General Nuclear Power Corporation (CGN) would pay a third of the cost of the £18bn project in exchange for a 33.5% stake.
Analysis by John Moylan, BBC industry correspondent
Is the plan for Britain's first new nuclear plant in a generation in trouble?
What is clear is that EDF faces major financial challenges.
Its share price has halved in the past year as falling French power prices have hit earnings.
Its current nuclear build projects in Finland and at Flammenville are over-budget and delayed.
It's facing a costly refurbishment programme to extend the life of its French nuclear plants. And in Hinkley Point C, it would be committing to a project that will cost more than its current market capitalisation.
It also has to placate its unions, which fear the project could put the entire company at risk
But EDF has already ploughed £2bn into Hinkley. And with so much political capital invested by the French and British governments too, it would be astonishing if EDF was to fall at the final hurdle.
The final investment decision by EDF was expected to be a formality.
But Les Echos said the French firm was struggling to find the cash for its 66.5% stake and was now "putting pressure on the [French] state, which owns 84.5% of EDF, to come up with fresh funds".
It said a final investment decision would now be made at the earliest at EDF's annual results on 16 February.
The reports contradict recent statements from EDF chief executive Jean-Bernard Levy who said just a week ago that the "two nuclear reactors that EDF plans to build at Hinkley Point will be launched very soon".
Reuters'Rattled'
Hinkley is due to start generating in 2025, and is expected to provide 7% of the UK's electricity once it is operational.
But the project was originally due to open in 2017, and it has come under fire for both its cost and delays to the timetable for building.
The government has also been criticised for guaranteeing a price of £92.50 per megawatt hour of electricity - more than twice the current cost - for the electricity Hinkley produces.
Greenpeace executive director John Sauven said: "The EDF board is clearly rattled as they delay yet again this crucial investment decision. It could well signal curtains for Hinkley.
"EDF managers as well as employee representatives on the board are deeply concerned this project is too risky and too expensive."
Meanwhile, the chief executive of Legal & General has described the project as "a £25bn waste of money".
Nigel Wilson told BBC 5 live: "The world is moving towards clean green and cheap energy."
"Solar, wind will play a much more important role. Hinkley is probably the most expensive energy we can think of right across Europe. That's really bad for society."
Decision on new nuclear power plant 'delayed' - BBC News
From 'Les Echos':
Enfin, EDF lâche 2,08% à 11,74 euros. L’électricien doit réunir un conseil d’administration ce mercredi au cours duquel il ne devrait faire qu’un « point d’information » sur le projet de construction de deux EPR à Hinkley Point, en Grande Bretagne, rapportent Les Echos. Selon le quotidien, EDF peine à boucler le financement de ce projet de 18 milliards de livres.
Les marchés freinés par les résultats et le brut, Actualité des marchés - Investir-Les Echos Bourse
EPR anglais : EDF peine à boucler son plan de financement
EXCLUSIF - Le projet de 18 milliards de livres pèse trop lourd pour l’électricien public, qui doit en prendre 66,5 %. L’électricien met la pression sur son actionnaire, l’Etat.
EXCLUSIF - Le projet de 18 milliards de livres pèse trop lourd pour l’électricien public, qui doit en prendre 66,5 %. L’électricien met la pression sur son actionnaire, l’Etat.
EPR anglais : EDF peine à boucler son plan de financement, Énergie - Environnement
From Greenpeace:
EDF postpone Hinkley decision - Greenpeace reaction
26 January, 2016
For immediate release For more information, please call Kate on 07801 212 959
According to the French newspaper, Les Echos, and Greenpeace sources, the board meeting to decide whether to invest in Hinkley Power Station has been postponed.
John Sauven, Greenpeace Executive Director said:
“The EDF board is clearly rattled as they delay yet again this crucial investment decision. It could well signal curtains for Hinkley. EDF managers as well as employee representativeson the board are deeply concerned this project is too risky and too expensive. George Osborne is almost alone in defending Hinkley’s honour. But he is pushing the project forward regardless of the eye watering expense for consumers and regardless of the fact that this reactor design, despite three attempts in Europe and China, doesn’t work. All three projects are massively delayed and hugely over budget. There isn’t a shred of evidence that it’ll be fourth time lucky in Somerset. The UK government needs to join the 21st century and start backing the renewable technologies that are proven to work, are cheaper than nuclear power, create jobs in the UK and contribute to the fight against climate change.”
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