Michele Kearney's Nuclear Wire

Major Energy and Environmental News and Commentary affecting the Nuclear Industry.

Thursday, March 29, 2012

i-Nuclear Update: German utilities RWE and E.On abandon plans to build new nuclear plants in UK

i-NUCLEAR

German utilities RWE and E.On abandon plans to build new nuclear plants in UK

by I-Nuclear
Germany utilities RWE and E.On announced March 29 they are dropping plans to build new nuclear power plants in the UK.
In a blow to the UK’s new nuclear programme, the German utilities said they would try to find a new owner for their UK joint venture, Horizon Nuclear Power.
Both companies cited global economic conditions and their own specific economics following the accelerated nuclear phase-out in Germany, which has hit both companies hard.
“A number of factors have changed since the formation of Horizon in 2009,” RWE said in a press statement.
“The global economic crisis has meant that capital for major projects is at a premium and nuclear power projects are particularly large scale, with very long lead times and payback periods,” the company said.
It also cited “the effect of the accelerated nuclear phase-out in Germany, which has led to RWE adopting a number of measures, including divestments, a capital increase, efficiency enhancements and a leaner capital expenditure budget.”



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