The Cour des Compeds of France has given a warning about rising nuclear energy costs. With the usefulness of the State, it urges to reduce its financial risks in international projects.
The Supreme Audit Institution of France, the Cour des Comptes, has one report About the feasibility of the nuclear plans that the government unveiled in 2022, and concludes that the industry is “far from ready” for the challenge.
The Cour des Comptes said that the plan to develop EPR2 core reactors – under pressure designed water reactors designed by EDF and Framatome – remains unclear.
‘The expected profitability of the EPR2 program remains unknown at this stage, especially since the financing conditions of this program are still not determined, “said the authors of the report. “If these conditions are clear, an extra year or more will be needed to obtain their approval by the European Commission. These delays and uncertainties, which also relate to the number of power plants to be built, reduce visibility that stakeholders in the industrial projects sector must implement and obtain financing. “
The report noted that the EPR2 program still does not miss a definitive cost estimate and financing plan, while EDF of the state of e-ownership company is very guilty. The Cour des Comptes ordered to withhold a final investment decision until the financing is secured.
These precautions are intended to prevent cost overruns that are comparable to those in the Olkiluoto EPR project of EDF in Finland, the Hinkley Point factory in the United Kingdom and the Flamanville 3 -facility in France.
“EPR reactors who are active in China and Finland have experienced several technical disruptions in recent years, with considerable financial consequences and harmful consequences for the credibility of the EPR2 program,” said Cour des Compes. “In his 2023 financial report, EDF had to register a depreciation of this active that reduced the results by € 11.5 billion ($ 11.77 million),” they added to refer to the Hinkley Point C project, of which the Costs rose to GBP 33 billion ($ 40.6 billion), an increase of 100% versus the initial estimated costs.
The court also said that a proposal to expand the SizeWell factory of EDF in the United Kingdom could be rejected if the French Nut would not reduce his financial exposure for Hinkley Point C. It warned that the industrial strategy implemented by EDF was not yet the responsibility of stakeholders and noted that the stimuli that are essential for the success of the EPR2 program.
“The strategy of the EDF Group, which is planning to continue to promote international nuclear reactors, no longer has to make excessive equity obligations or take excessive risks in terms of profitability and operational coordination between the various projects,” the court said and notes that this Financial risks can slow down the schedule of the EPR2 program in France.
The report concluded that the efforts to strengthen the nuclear industry remain insufficient, in particular in the reconstruction of skills and capacity.
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