EDF and Centrica will form a separate 80/20 joint venture through which they will undertake the pre-development activities for a planned nuclear new build program
- By April Murelio -
Centrica plc has completed the purchase of its stake in British Energy through the acquisition of a 20 per cent equity stake in Lake Acquisitions from EDF, and the sale of its 51 per cent stake in the Belgian business SPE through the purchase by EDF of Segebel SA.
As well as owning a 20 percent stake in British Energy's existing eight nuclear power plants, Centrica will also off-take 20 per cent of the uncontracted power from the fleet. In addition EDF and Centrica will form a separate 80/20 joint venture through which they will undertake the pre-development activities for a planned nuclear new build program, with the intention of constructing, and operating and decommissioning four European Pressurised Reactors. EDF will also provide Centrica with an additional 18TWh of power at market prices over five years from 2011.
Commenting, Centrica Chief Executive Sam Laidlaw said: "We are delighted to have now completed the transaction with EDF. We believe nuclear energy is an essential component in ensuring clean, secure energy for the UK and we are proud to be part of our country's nuclear renaissance. The price secured for the sale of SPE will help preserve our balance sheet firepower as we consider other investment opportunities that will further underpin UK energy supply security."
Nuclear energy is already an important component of Centrica's and the UK's energy portfolio. Power from nuclear energy is an efficient source of low carbon electricity and provides the UK with a steady power supply.
Centrica entered the UK nuclear sector through its purchase of a 20% stake in nuclear power generator British Energy (BE) from EDF in November 2009. This ownership provides us with access to 20% of BE's energy production and the opportunity to participate with EDF in any future new nuclear power plant projects. In addition EDF and Centrica will form a separate 80/20 joint venture through which they will undertake the pre-development activities for a planned nuclear new build programme, with the intention of constructing, and operating and decommissioning four European Pressurised Reactors.
Centrica will not operate any of the nuclear facilities – this remains the responsibility of EDF who are world leaders in nuclear generation.
Joining the nuclear industry is an important move for us as it delivers strategic, financial, consumer and climate change benefits.