French nuclear sector re-thinks strategy after UAE awards contract to Korea
- Edited by April Murelio -
According to an AFP report, the French nuclear power sector is to re-focus its strategy, notably in Britain and the United States, after losing out to a South Korean consortium on a 20.4-billion-dollar project in the United Arab Emirates.
"The French team spent too much time getting itself together," Claude Gerant, the French presidential secretary general, told the newspaper Les Echos.
The French group Areva, the world's largest producer of nuclear power, had joined forces with French energy heavyweights EDF, GDF-Suez, Total and Vinci to bid for a huge contract -- worth USD20 Billion -- to build four nuclear power plants in the United Arab Emirates. The contract was won by the Korea Electric Power Corporation (KEPCO).
"The French sector is poorly coordinated and the problem needs to be addressed by the majority shareholder in Areva and EDF, that is, the state, through the voice of the government and if necessary the president of the republic," said Francois-Michel Gonnot, vice chairman of the energy studies group in the National Assembly and a member of the ruling UMP party.
France is under pressure as the market for nuclear power is expanding rapidly in the face of rising demand for electricity. President Nicolas Sarkozy early this month charged former EDF head Francois Roussely with the task of executing "an in-depth study" of the French civilian nuclear power industry. The study, to be completed by June 2010, is to assess prospects for nuclear power between now and 2030 and "to develop concrete proposals," according to the terms of Roussely's mission.
Three European Pressurized Reactors (EPRs) developed by Areva are under construction -- one in Finland, two in China, and one in France. Construction of second EPR in France is planned. After the setback in the United Arab Emirates, the French sector is looking to Britain, where EDF, which last year acquired British nuclear power company British Energy, is to build four reactors. The U.S. market is also of interest to France. EDF has just taken a 49.9 percent stake in U.S. group Constellation Energy and will build four of the eight new reactors planned by U.S. authorities.
Areva meanwhile is this week expecting a letter of intent from the Fresno industrial consortium enabling the French group to present a bid for another EPR in the United States, the facility would supply electricity to a marine desalination plant in California.
In addition Areva has its sights on India, where it put forward an offer in July to connstruct two reactors. The contracts are expected to be signed in 2010.