EPR: Enfant Terrible of the French Nuclear Industry
For instance the Olkiluoto-3 reactor in Finland, built by French nuclear company Areva, was supposed to come on-line in May 2009 after four years of construction, but it is now over three years behind schedule and more than 50 percent over budget. The roughly EUR 3 billion bill will end up being paid by taxpayers and Finnish electricity consumers.
To drive this message home this week we have started distributing a spoof "extra electric bill" to over 20 000 households in Finland making sure that all 200 members of parliament also receive it.
(UPDATE: See the costs and counter)
The French nuclear industry isn't only facing financial problems in Finland but back home as well. Today, French nuclear energy giant Electricité de France (EDF) issued its first ever public bonds in order to raise cash. EDF claims to need the money to finance its domestic investment programme.
However we know from the report "Areva and EDF: Business prospects and risks in nuclear energy" by Prof. S. Thomas that the company's need for money is largely caused by their recent foreign investments, which are based on the highly speculative assumption that the nuclear industry will revive.
Both EDF and Areva are at the forefront of the new worldwide nuclear push, and their future strategy is built on an expansion of the nuclear industry. This strategy is based almost entirely on the EPR.
But the future of the companies, as well as the EPR market is very uncertain. Since last year, EDF has already invested more than EUR 20 billion in the UK, USA and China, counting on the promise of new reactors. However the new build plans are dependent on government subsidies and loan guarantees. Also Steve Thomas' report illustrates that other markets are still very speculative and even if these markets do materialize, orders are still five to ten years away.
The truth is that both want to sell existing businesses to keep debt under control, but if they can do that without damaging their score business remains to be seen*. This could leave both companies in serious financial trouble presenting their owners, mainly French taxpayers with a large bill and the new nuclear program in doubt.
Nuclear energy proves to be risky business. But not the nuclear companies, but consumers and taxpayers take on the risks. Nuclear energy is a dangerous waste of time: it gets in the way of urgently needed investments in clean, renewable sources of energy and energy efficiency.
* In summer 2009, Areva's debt was about EUR 4.5 billion, while it needs EUR 10 billion to finance its investment needs over the next four years, and another EUR 2 billion to buy out Siemens.
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Comments
Since the days of Windscale trouble has been brewing for people and planet. Accidents, released toxic waste water into the Irish sea, increases in cancer and childhood leukaemia and increasing fear for safety and security. Resist the bankrupt claims of energy companies, lets put our investment into renewables
Posted by: Susie Hewson | June 18, 2009 3:32 PM
this is non factual
Posted by: jeff | June 20, 2009 2:20 AM