François Hollande to gather ministers for Hinkley Point talks

François Hollande to gather ministers for Hinkley Point talks

French president and ministers expected to consider financing options for project to build two nuclear reactors

Artist’s impression issued by EDF of how the new Hinkley Point C station will look. Photograph: EDF Energy/PA

Angelique Chrisafis in Paris

Tuesday 19 April 2016

The French president, François Hollande, is expected to hold a meeting of government ministers at the Elysée palace on Wednesday to discuss whether or not the construction of the £18bn Hinkley Point nuclear power plant in Britain will go ahead.

The French government is not yet expected to reach a final decision on the controversial plans for France’s state-controlled utility EDF to build two nuclear reactors at Hinkley Point. But the president and top ministers are expected to consider the various financing options for the project.

EDF shareholders will then meet later this week to consider the options. After repeated delays, a shareholder vote and a final decision are expected in early May.

The French economy minister, Emmanuel Macron, insisted on Sunday in a BBC interview that the Hinkley Point project would definitely happen, but he told EDF unions last week that a final investment decision on it had not yet been taken.

Macron has repeatedly said the French government was working intensively to secure financing for EDF’s projects and was firm in its support for Hinkley Point. But Ségolène Royal, the environment and energy minister, has shown more reserve, saying earlier this month that a possible postponement of the project was still under discussion.

The vast project is controversial in France. EDF, which is 84% owned by the French government, is already struggling with a debt pile of more than €37bn and trade unions have called for the project to be delayed. EDF’s finance director resigned last month and its trade unions warned the project could severely damage the company.

If the project goes ahead, there could be major financial risk for EDF. But backing out could raise questions about French credibility. “Whatever the decision, the dangers are huge,” Le Monde quoted an EDF management source as saying.

The fact that the Elysée meeting will be attended by a number of the government’s key ministers, from the prime minister to the foreign minister and economy minister, shows how high the stakes are.

Hinkley Point will be one of the world’s most expensive nuclear power plants and will produce 7% of Britain’s energy needs by 2025. The project was announced in October 2013 but a final investment decision has been delayed as EDF struggles to find partners and financing. Chinese utility CGN signed up for a one-third stake last October, leaving EDF to fund the rest.

The final decision by EDF to go ahead with Hinkley has been repeatedly delayed and the billions of pounds of state subsidies and the feasibility of the giant project have been widely criticised.

Doubts over the project are also linked to the evolutionary power reactor (EPR) technology that will be used. There are no working versions, and other EPR plants under construction are running behind schedule and over budget.

http://www.theguardian.com/uk-news/2016/apr/19/francois-hollande-to-gather-ministers-for-hinkley-point-talks

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