Subscribe to our free daily newsletters
  Energy News  

Subscribe to our free daily newsletters

French power company EDF underestimating costs: study
by Staff Writers
Paris (AFP) Nov 17, 2016

France's power giant EDF has "drastically" under-budgeted the cost of dismantling its old reactors and investing in new projects such as a contested British nuclear plant, a Greenpeace-commissioned study said Thursday.

The amount of under-budgeted costs for state-controlled EDF to take old reactors out of commission and deal with waste disposal is evaluated at between 57.3 and 63.4 billion euros in 2025 ($61.3 - $67.8 billion), the study said.

This is more than double the current value of the company, which is nearly 25 billion euros, said the report's authors, financial analysis firm AlphaValue.

The heavily-indebted French power company has recently hit international headlines over its construction of the Hinkley Point plant in southwestern England.

Following a string of controversies, the contract for building Britain's first nuclear plant in a generation was finally signed at the end of September by EDF and a Chinese partner.

AlphaValue said it based its calculations on EDF figures as well as those in several reports by the French government body charged with auditing state-controlled firms.

According to these reports, EDF faces closing at least 17 of its 58 reactors under France's plans to reduce its reliance on nuclear in favour of renewable energies such as wind and solar.

AlphaValue also compared EDF's cost calculations against those of other nuclear power operators in other countries, in particular Germany.

These comparisons "should be analysed with caution because there are different parameters in different countries which explain the differences," an EDF spokesman told AFP.

Moreover, EDF's provisions for decommissioning costs were approved by the energy ministry in 2014 and 2015, the spokesman added.

AlphaValue also said that EDF should consider reducing in its accounts the value of its nuclear and conventional power plants, given the transformation of the European energy market where renewable capacity is increasing while overall electricity demand is expected to slowly decline.

EDF said its analysis didn't show any risk of a drop in the value of its assets.

AlphaValue estimated that EDF would need to invest more than 160 billion euros between now and 2025 to construct Hinkley Point, maintain its reactors, develop renewables and buy the reactor business of Areva, or more than 15 billion euros per year.

Meanwhile EDF estimates its investment needs at between 12.5 and 13.5 billion euros per year for the coming three years.

On the positive side, the reduction of nuclear capacity will likely cause electricity prices to rise, which around 2025 should lead to increases in EDF's revenues.




Comment on this article using your Disqus, Facebook, Google or Twitter login.

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once

credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly

paypal only


Related Links
Nuclear Power News - Nuclear Science, Nuclear Technology
Powering The World in the 21st Century at

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Previous Report
Finnish client 'alarmed' by French nuclear industry overhaul
Helsinki (AFP) Nov 16, 2016
Finnish utility TVO said Wednesday it was "alarmed" by the French nuclear industry's restructuring plans after France's Areva, which is building its troubled nuclear reactor, confirmed the sale of its reactor business. French power giant EDF and Areva said earlier Wednesday they had signed "binding agreements" for the sale of Areva's struggling reactor business to EDF for 2.5 billion euros ( ... read more

New biofuel cell with energy storage

Bioelectronics at the speed of life

NREL finds bacterium that uses both CO2 and cellulose to make biofuels

State partnerships can promote increased bio-energy production, reduce emissions

Wind and solar energy projects could bring 5,000 new jobs to rural Minnesota

'Back to the Future' inspires solar nanotech-powered clothing

New way to make low-cost solar cell technology

A New Way to Image Solar Cells in 3-D

DONG Energy sets wind energy sights on Taiwan

Interior set to rule on future of BLM's Renewable Energy Program

Microsoft Corp. taps deeper into wind power

Alberta pushing hard on renewable energy pedal

Study: LED lights draw fewer insects

Shifting focus leaves mixed bag for German utility RWE

Deeper carbon cuts needed to avoid climate tragedy: UN

New program makes energy-harvesting computers more reliable

Researchers report new thermoelectric material with high power factors

EAST achieves longest steady-state H-mode pperations

Bottlebrush polymers make dielectric elastomers viable for use in devices

PPPL physicists build diagnostic that measures plasma velocity in real time

New toxicology test could improve USDA, EPA chemical screening

Heavy pollution shuts schools in Iran's capital

As mercury emissions drop, so do concentrations in tuna

Pollution emitted near equator has biggest impact on global ozone

Oil prices retreat after banner day

Scientists find land-based birds affected by Deepwater Horizon oil spill

Norway's DNO signs oil agreement with Iran

Oil market latest pressure for Dakota Access pipeline

Meteorites reveal lasting drought on Mars

Opportunity heads to next waypoint at over 27 miles on the odometer

A funnel on mars could be a place to look for life

Novel Analysis Technique Helps Solve Beagle 2 Mystery

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement