Europe's utilities plan new nuclear projects

new york (Platts)--30Jun2005

Electrabel and Franco-Belgian parent Suez are making real inroads into
"Fortress EDF," otherwise known as the French power market. The group has
captured 8.5% of the eligible market, equivalent to 25TWh, Suez said on June
14. The short-term objective is to get 10% of the market.

Meanwhile Suez is in negotiations with EDF concerning a share in the EPR
nuclear project (a 1.6GW nuclear station to be sited at Flamanville), but it
says it also plans to build its own nuclear power plants from 2015. Italy's
Enel has already taken a stake in the EPR and German utilities are in talks
with EDF on the same subject.

Industry may be moving faster than governments on nuclear, but Germany's
Social Democrat chancellor Gerhard Schroeder's surprise plan to bring forward
federal elections by around 12 months to September this year has triggered
fevered speculation over the future of the country's nuclear phase-out law,
domestic coal aid and renewable energy support.

The announcement of new elections triggered a share price rise at energy
giants RWE and Eon, both nuclear operators, but saw solar company share prices
fall sharply. The opposition CDU party is in the ascendancy, and if it gains
power it intends to lift restrictions on the lifetime of existing reactors. 

Further, domestic coal subsidies face another squeeze if a new conservative
government takes the helm, although the effect will not be felt until toward
the end of the decade. Meanwhile, in Sweden nuclear operators are pressing
ahead with plans to uprate reactors, despite the official government line that
nuclear will be phased-out. Has a perceived 'disconnect' between Europe's
politicians and its citizens spread beyond the CAP/EU Constitution/etc
to nuclear? Swedish polls show Swedes now think nuclear has a renewed
importance in a carbonconstrained Europe.

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