Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

EDF Energy extends life of four UK nuclear power stations

Published 16/02/2016, 10:46
© Reuters. File photo of steam rising at sunset from the cooling towers of the Electricite de France (EDF) nuclear power station at Nogent-Sur-Seine
EDF
-

LONDON (Reuters) - EDF Energy (PA:EDF) is to extend the life of four nuclear power plants in Britain, a measure which should help reduce an electricity supply gap looming in the coming decade.

Britain faces a power supply gap because the government plans to close coal-fired power plants by 2025, which some experts have feared could lead to electricity shortages.

The country has 15 nuclear reactors in operation which came online from the 1970s to the 1990s. Most were due to be retired by 2023 unless they got extensions.

As part of parent group EDF's results for 2015, EDF Energy said on Tuesday it would extend the lives of its Heysham 1 and Hartlepool nuclear plants by five years to 2024 and Heysham 2 and Torness by seven years to 2030.

Together, the four nuclear stations supply around 4.7 gigawatts of electricity to Britain, or more than half of the country's current nuclear capacity.

"In the face of challenging market conditions, belief that two important government policies will be maintained and strengthened has given EDF Energy the confidence to move the scheduled closure dates of the four stations," the company said in a statement.

"The carbon price floor encourages generation from low-carbon sources like nuclear while the capacity market ensures the UK has the power it needs," it added.

EDF Energy said it invests 600 million pounds ($867 million)a year in its nuclear plants. Last year, their output was 60.6 terrawatt hours, the highest level for 10 years and 50 percent higher than in 2008 when EDF Energy acquired the plants.

Parent EDF also said on Tuesday that the investment decision on its 18 billion-pound ($26 billion) project to build two nuclear reactors at Hinkley Point was coming closer. "Final steps are well in hand to enable the full construction phase to be launched very soon," EDF Energy added.

© Reuters. File photo of steam rising at sunset from the cooling towers of the Electricite de France (EDF) nuclear power station at Nogent-Sur-Seine

($1 = 0.6923 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.