EDF board approves state compensation for closure of France's oldest nuclear plant

Record ID: 165556

  • Title: EDF board approves state compensation for closure of France's oldest nuclear plant
  • Date: 24th January 2017
  • Summary: LA DEFENSE, FRANCE (JANUARY 24, 2017) (REUTERS) VARIOUS EXTERIORS OF EDF HEADQUARTERS AT LA DEFENSE BUSINESS DISTRICT ENTRANCE TO EDF BUILDING EDF LOGO ON SCREEN PARIS, FRANCE (JANUARY 24, 2017) (REUTERS) VARIOUS OF EDF CHIEF EXECUTIVE OFFICER JEAN-BERNARD LEVY GIVING SPEECH AT EVENT (EVENT IS NOT RELATED TO FESSENHEIM CLOSURE) (SOUNDBITE) (French) EDF CHIEF EXECUTIVE OFFICER, JEAN-BERNARD LEVY, SAYING: "Jobs will be preserved on the Fessenheim site until the end of 2018 because the plant will in any case continue to function until the end of 2018. If the plant continues its production after that-- because some conditions will or will not be fulfilled -- jobs will not be affected. Otherwise we will have a long and gradual shutdown period at Fessenheim, several years and then a long dismantling period. What is certain is that salaried jobs at EDF are guaranteed and the government has put into place a structure, a delegation for the revitalisation of the Fessenheim site in particular with energy transition projects which the energy minister has put forward and which aims to transform this territory into one that specialises in energy and for many years to come." ENVIRONMENTAL GROUP GREENPEACE LOGO WRITING ON WALL READING (English): "Change the world without taking power" GREENPEACE SPOKESMAN IN CHARGE OF ENERGY, CYRILLE CORMIER, TALKING TO REPORTER (SOUNDBITE) (French) GREENPEACE FRANCE ENERGY CAMPAIGNER, CYRILLE CORMIER, SAYING: "There are many reactors in France which have been subjected to a series of incidents, on steam generators or on the reactor's cistern - the primary circuit at the heart of reactors - and so there are security faults which can result in nuclear accidents. There are 30 of them in France, and indeed, Fessenheim is the first of the list to close, there will be many others." VARIOUS OF BANNER READING (English): "EDF IS BANKRUPT, LET'S PHASE OUT NUCLEAR POWER, GREENPEACE" (SOUNDBITE) (French) GREENPEACE SPOKESMAN IN CHARGE OF ENERGY, CYRILLE CORMIER, SAYING: "French nuclear reactors are ageing, they will close for nuclear safety reasons and one will have to prepare EDF and its employees to turn to sustainable energies. That's what EDF needs to do." LA DEFENSE, FRANCE (JANUARY 24, 2017) (REUTERS) VARIOUS OF EDF HEADQUARTERS
  • Embargoed: 7th February 2017 15:40
  • Keywords: Fessenheim nuclear plant EDF closure compensation
  • Location: PARIS, LA DEFENSE AND FESSENHEIM, FRANCE
  • City: PARIS, LA DEFENSE AND FESSENHEIM, FRANCE
  • Country: France
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA00260FZ6TJ
  • Aspect Ratio: 16:9
  • Story Text:The board of French state-controlled utility EDF has approved the government's plan to compensate it for the planned closure of the Fessenheim nuclear plant, against which trade unions have protested over fears of possible job losses.
    EDF and the French government agreed last year on a compensation package for shutting down the site.
    EDF said on Tuesday it would get an initial payment of around 490 million euros ($526.7 million) covering costs associated with Fessenheim's closure, and added it could then get further payments up until 2041.
    EDF also confirmed that Fessenheim's closure would require a government decree, subject to EDF obtaining official authorisation for its new generation EPR reactor in Flamanville and for the re-start its 1,300-megawatt (MW) Paluel 2 nuclear reactor which has been offline since May 2015.
    This will enable the firm to maintain France's installed nuclear electricity generation capacity at 63.2 gigawatts.
    EDF unions are against closing Fessenheim which they said could lead to job losses and put French power supplies at risk.
    But EDF Chairman and Chief Executive Jean-Bernard Levy made assurance that jobs would not be affected, until at least the plant's closure.
    "Jobs will be preserved on the Fessenheim site until the end of 2018 because the plant will in any case continue to function until the end of 2018. If the plant continues its production after that-- because some conditions will or will not be fulfilled -- jobs will not be affected. Otherwise we will have a long and gradual shutdown period at Fessenheim, several years and then a long dismantling period. What is certain is that salaried jobs at EDF are guaranteed and the government has put into place a structure, a delegation for the revitalisation of the Fessenheim site in particular with energy transition projects which the energy minister has put forward and which aims to transform this territory into one that specialises in energy and for many years to come," Levy said during an event on energy innovations.
    For environment group Greenpeace, who have long fought for the closure of France's oldest plant which they consider dangerous, the news did not come as a surprise.
    "There are many reactors in France which have been subjected to a series of incidents, on steam generators or on the reactor's cistern - the primary circuit at the heart of reactors - and so there are security faults which can result in nuclear accidents. There are 30 of them in France, and indeed, Fessenheim is the first of the list to close, there will be many others," said Greenpeace campaigner on energy, Cyrille Cormier.
    Greenpeace said it was time to get rid of nuclear power and turn to renewable energies.
    "French nuclear reactors are ageing, they will close for nuclear safety reasons and one will have to prepare EDF and its employees to turn to sustainable energies, that's what EDF needs to do," Cormier said.
    The 1,800-MW Fessenheim plant in northeastern France was commissioned in 1978 and is scheduled to stop production this year, following a 2012 election campaign promise by outgoing President Francois Hollande.
    Some candidates in France's April and May presidential election, including conservative frontrunner Francois Fillon, are against the closure. He has promised to halt the shutdown.
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