market insight - july edition
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Nuclear concerns threaten markets across North West EuropeTRANSCRIPT
ENERGYQUOTE JHA
JULY 2015 EDITION
MARKETINSIGHT
energyquote.comA Unique Perspective
Nuclear concerns threaten markets across North West EuropeThe available generation capacity in Belgium has been at alarmingly low levels since last winter already. This situation is unlikely to go away soon, with the re-opening of the nuclear turbines where cracks were found (Doel 3 and Tihange 2) postponed until at least November.
The extension of Doel 1 and Doel 2 is yet to be negotiated, and the current debate on Tihange 1 is not doing this process any favours. The lack of a clear and transparent energy policy and a lack of political consensus continue to create a situation that not only drives prices up in Belgium and neighbouring countries, but also endangers the security of supply during the coming winter months for the next couple of years.
Structural solutions will need to be proposed and implemented, and significant investment in existing nuclear plants or in alternative solutions is required. In such an unstable political climate, it is not surprising that the operators of the nuclear plants focus on their own business goals and demand high profit margins to offset the political risks. The potential impact on businesses in Belgium continues to be very high.
It has also been a bad start to 2015 for the French nuclear industry. In June the French nuclear safety watchdog admitted to “multiple failure modes” that carry “grave consequences” on crucial safety relief valves on EDF’s £7 billion Flamanville nuclear plant in Normandy. Also concerning for EDF is that the Flamanville plant is the same type of European pressurised reactor that is planned for the £24 billion Hinkley Point C in south-west England where construction has also been delayed over planning concerns and government support. The Flamanville project has been beset by technical and financial problems since construction, which was due to take 54 months, began in 2007. Areva and EDF have been hit by the global backlash against nuclear plants since the Fukushima accident in 2011.
A Unique Perspective | Market Insight | July 2015 Edition
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