European Infrastructure Finance Yearbook - Investing In Bonds ...

UTILITIES
18 ■ NOVEMBER 2007
Limited Nuclear Revival In The EU
Nevertheless...
Following the commissioning in September 2007
of the Cernavoda 2 reactor in Romania, 146
reactors are currently in operation in the EU
providing 30% of the region’s electricity.
Only four plants are currently being built and
another four are planned (see table 1). This
compares with 33 plants being currently built
worldwide and 94 planned. A number of
additional nuclear plants are being considered in
other EU countries, especially the Czech Republic
and Finland as well as Lithuania and Romania,
but with no firm commitment so far.
...Given Relatively Limited Political And
Public Support So Far...
Although the EU is generally supportive of the
development of nuclear power, support at state
level is more mixed.
Recognizing the right of each member state to
decide on its energy mix, in March 2007 the EU
Council underlined nuclear power’s place within
the region’s carbon-reduction strategy, and its
contribution to addressing growing concerns
about security of supply. However, the council
also highlighted nuclear power’s drawbacks in
terms of safety, decommissioning, and
waste management.
Within the EU, some countries are clearly
supportive of nuclear power, especially France,
Finland, and a number of Eastern European
countries. In The Netherlands, the government
Country Existing nuclear phase out legislation/policy State of debate
Belgium A 2003 law imposes the closure of nuclear plants after 40 The "Commission Energie 2030" in its
years of operation--with exceptions possible for security of 2006 report recommended the reversal
supply concerns--and prohibits the building of new nuclear
plants. Gradual phase out planned to be completed in 2030,
with first plant closure to occur in 2015.
of the nuclear phase out policy.
Germany Based on the "Atomausstiegsgesetz" law, government and The German government's coalition
nuclear operators agreed in 2001 to limit the average life agreement includes a clause stating
of nuclear plants to 32 years based on production quotas. that there is no agreement on this
The building of new nuclear plants is also prohibited. matter.
Spain Policy is to phase out nuclear power but no schedule or Policy of current government is to reduce
specific strategy set. recourse to nuclear power without
compromising security of supply.
Sweden The "Nuclear Power Decommissioning Act" of January 1998 No decision on phasing out of nuclear
allows the government to decide that the right to operate a power to be taken by current
nuclear power plant will cease to apply at some point. Such government during term in office
a decision infers the right to compensation from the state. (2006-2010).
Source: Standard & Poor's.
Table 2 - Nuclear Power Phase Out Policies In Europe
STANDARD & POOR’S EUROPEAN INFRASTRUCTURE FINANCE YEARBOOK
Table 1 - Nuclear Power Plants In the EU
Nuclear reactors
Under
Operational construction Planned
France 59 1 0
Germany 17 0 0
Spain 8 0 0
Sweden 10 0 0
United Kingdom 19 0 0
Finland 4 1 0
Bulgaria 2 0 2
Romania 2 0 2
Slovakia 5 2 0
Others 20 0 0
Total 146 4 4
Source: World Nuclear Association, October 2007.
signed the Borssele covenant in June 2006, under
which the operating life of the country’s only
nuclear power station in Borssele has been
extended until 2033 at the latest, as long as it
remains in the top quartile of the safest power
stations of its kind within the EU, the U.S., and
Canada. In its May 2007 energy white paper, the
British government also clearly reiterated its
support for new nuclear power stations, the costs
of which, including for decommissioning and
waste disposal, must, however, be entirely borne
by the private sector.