Part One of Two Parts
The news is full of the story of the United Kingdom referendum vote to leave the European Union. Supporters of the decision to leave the E.U. say that their country will be better off while critics proclaim gloom and doom ahead for the U.K. economy. The impact, positive and negative, will be felt worldwide. What effect will the U.K. exit have on projects involving nuclear energy in the U.K?
The CEO of the French nuclear company EDF has said that the exit of the U.K. from the E.U. will have no impact on their commitment to the troubled Hinkley Point C project. The Hinkley Point C project involves the construction of two of the new European Pressurized Reactors in Britain. The new reactors will supply seven percent of the electricity for the UK starting in 2025 if the project is completed. The CEO said, "As of today, we believe that this vote has no impact on our strategy, and the strategy for our UK subsidiary (EDF Energy) has not changed. Our business strategy is not linked to Great Britain's political affiliation with the European Union, so we have no reason to change it." He also said, "Market analysts believe that the pound will drop, but if the currency falls, the economy becomes more competitive. I think we need to adapt to economic conditions and to exchange rates, which can evolve."
NuGeneration is a U.K. joint venture between Toshiba, the Japanese company that owns Westinghouse, and Engie, a French company. They have a project in the works at Moorside in West Cumbria for the construction of nuclear power plant that will supply almost four gigawatts from Westinghouse AP1000 reactors. NuGen has stated that the U.K. exit from the E.U. will have no effect on their project. However, a NuGen representative said that, "In order to deliver the plant on time and on budget, we must secure clarity on policy and ensure the Government does everything it can to deliver investment stability for vital UK infrastructure projects."
Horizon Nuclear Power is developing plans to construct U.K. Advanced Boiling Water Reactors at two different sites; Wylfa Newydd on the Isle of Anglesey and Oldbury-on-Severn in South Gloucestershire. Horizon was purchased by Hitachi in 2012. They intend to generate at least five and a half gigawatts between the two sites with the first reactor operational by 2025. Horizon representatives stated that "Like all businesses we'll need to assess the wider impacts of the [referendum] result, but we will continue to develop our plans." Horizon has created a joint venture including Hitachi Nuclear Energy Europe, Bechtel Management Company and JGC Corporation to carry out the project at the two sites.
PriceWaterhouseCooper's global head of nuclear capital projects and infrastructure said that the U.K. exit could have a "could have a significant impact on our nuclear program." She also said, "Ongoing uncertainty in the market, at least in the short term, could affect access to capital and investor confidence in what is already a limited trading arena. And while the UK government will need to work out political, trading and legal issues, we will also potentially need to renegotiate our involvement in the Euratom Treaty and our 123 Agreement with the US - and this will take time."
Please read Part Two:
