French utility EDF, Centrica eye UK government deal on Sizewell B nuclear plant extension
EDF and Centrica's Investment Plans for Sizewell B Extension
Background and Current Status of Sizewell B
June 10 (Reuters) - France's EDF and UK-based Centrica are prepared to invest about £800 million ($1.07 billion) to extend the lifespan of Britain's Sizewell B nuclear power station to 2055 from 2035, an EDF spokesperson told Reuters on Wednesday.
Sizewell B on the North Sea coast in Suffolk supplies nearly 1.2 gigawatts of electricity to the grid and is the only pressurised-water reactor in the UK.
Negotiations with the UK Government
The French state-owned utility seeks to agree on a framework with the UK government, the spokesperson said.
"Volatility in the energy markets over the past few years has reinforced the importance of securing a suitable model to reduce commercial risks and enable that investment decision," EDF added.
Centrica's Role and Stake in Nuclear Fleet
Centrica has a 20% interest in Britain's existing nuclear fleet through its stake in EDF Energy's UK nuclear generation business, including Sizewell B.
Technical Feasibility and Ongoing Discussions
A life extension for the plant is technically possible, and negotiations were under way with the UK to enable the required investment, EDF's British arm had said in January.
Progress Towards a Draft Deal
Bloomberg News, citing sources, reported earlier that EDF and Centrica were close to agreeing a draft deal with the government to extend the plant's life.
The companies are nearing a heads of terms agreement with the Department for Energy Security and Net Zero, with an announcement expected within weeks, the report said.
Financial Terms and Industry Response
Under the terms being discussed, Sizewell B would receive about £70 per megawatt-hour of electricity generated, Bloomberg added.
Centrica and the UK Department for Energy Security and Net Zero did not immediately respond to Reuters' requests for comment on the report.
Additional Information
($1 = 0.7479 pounds)
(Reporting by Unnamalai L in Bengaluru and Nina Chestney; Additional reporting by Ananya Palyekar and Mrinmay Dey, Editing by Devika Syamnath and Joyjeet Das)
