CONSULTING
20160713MSC-WNISR2016V2-LR
20160713MSC-WNISR2016V2-LR
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
the Generic Design Assessment program, a process expected to take about 4 years. 825 Plans are at<br />
an early stage and by May 2016, no timescales or even the number of reactors proposed had been<br />
announced.<br />
The October 2013 announcement led to formal State Aid notification of the proposal to the<br />
European Commission, and on 18 December 2013, the Commission announced it was<br />
investigating the deal. On 8 October 2014, only days before he left office, Commissioner Joaquin<br />
Almunia announced the Commission's authorization of the state aid scheme. 826 The decision is<br />
being challenged by the Austrian and Luxembourg governments and some renewable energy<br />
utilities. However, by May 2016, hearings on the challenge had not started.<br />
Other new delays were triggered by EPR builder AREVA's 2015 technical bankruptcy, which not<br />
only makes it virtually impossible for AREVA to contribute 10 percent to the investment but is<br />
throwing the entire nuclear sector in France into great difficulty (see France Focus). Further<br />
uncertainties arose in April 2015, after “very serious” material defects were identified on the<br />
Flamanville EPR pressure vessel bottom and lid. 827 According to the French regulator, the<br />
assessment of the safety implications will take at least until December 2016. As a result of the<br />
issues raised by the defective parts, the French safety authorities required AREVA to carry out an<br />
audit of quality control procedures. ASN reported that: “They revealed irregularities in the<br />
manufacturing checks on about 400 parts produced since 1965, about fifty of which would appear<br />
to be in service in the French NPPs. These irregularities comprise inconsistencies, modifications<br />
or omissions in the production files, concerning manufacturing parameters or test results.” 828 By<br />
early July 2016, the implications of these failings were not clear but they could seriously affect the<br />
viability of the rescue of AREVA and of course, the Hinkley Point project (see also France Focus).<br />
The delays with the Hinkley project mean that the two other consortia considering investment in<br />
new nuclear in the U.K. are now, on their own projections, close to overtaking the Hinkley project.<br />
NuGen, in June 2014, finalized a new ownership structure with Toshiba-Westinghouse<br />
(60 percent) and GDF-Suez (40 percent), as Iberdrola sold their shares. The group plans to build<br />
three Toshiba-Westinghouse-designed AP1000 reactors at the Moorside site, with units proposed<br />
825 ONR, “Assessing new nuclear reactor designs—Generic Design Assessment Quarterly Report (July-<br />
October 2015)”, Office for Nuclear Regulation, see http://www.onr.org.uk/new-reactors/reports/gdaquarterly-report-jul-oct15.pdf,<br />
accessed 18 June 2016.<br />
826 European Commission, “Commission Decision of 08.10.2014 on the aid measure SA.34947 (2013/C)<br />
(ex2013/N) which the United Kingdom is planning to implement for Support to the Hinkley Point C Power<br />
Station”, 8 October 2014.<br />
827 For a 4-page briefing on the issue see Yves Marignac, “Fabrication Flaws in the Pressure Vessel of the<br />
EPR Flamanville-3”, WISE-Paris, 12 April 2015, see https://www.dropbox.com/s/njavhw7ihvkbyeu/WISE-<br />
Paris-Fabrication-Flaws-EPR-Flamanville-Latest.pdf, accessed 4 July 2015.<br />
828 ASN, “AREVA has informed ASN of irregularities concerning components manufactured in its Creusot<br />
Forge plant”, News Release, 4 May 2016, see http://www.french-nuclear-safety.fr/Information/Newsreleases/Irregularities-concerning-components-manufactured-in-its-Creusot-Forge-plant,<br />
accessed<br />
18 June 2016.<br />
Mycle Schneider, Antony Froggatt et al. 195 World Nuclear Industry Status Report 2016