29 Mar (NucNet): E.ON and RWE Npower have announced they will not be going ahead with plans to build nuclear power plants in the UK.
The companies said in a joint statement today that they would be seeking a new owner for Horizon Nuclear Power, a 50-50 joint venture established in 2009 that was working on plans to build nuclear plants at Wylfa on the island of Anglesey and at Oldbury-on-Severn in Gloucestershire.
RWE said “a strategic review” had been carried out separately by both parent companies and they would not proceed to develop new nuclear power projects in the UK.
The company said a number of factors have changed since Horizon was formed. 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.
RWE added that the “accelerated nuclear phase-out” in Germany has led to it adopting a number of measures, including divestments, a capital increase, efficiency enhancements and “a leaner capital expenditure budget”.
E.ON said the decision not to go ahead with new build in the UK was made following “a full review” and against the backdrop of the wider E.ON group’s financial constraints.
Tony Cocker, chief executive of E.ON UK said: “E.ON has decided to focus its investment in the UK on other strategic projects that will allow us to deliver earlier benefit for customers and our company, rather than the very long term and large investment new nuclear power calls for.”
The statement said RWE and E.ON will now focus on finding a new owner for Horizon Nuclear Power. “Both parties will endeavour to ensure that Horizon’s assets and work on development can be taken up quickly by other potential investors.”
Last month Horizon said it had completed the purchase of land at Oldbury-on-Severn for a planned new nuclear plant. It also said it was bringing forward plans for the development of around six gigawatts of new nuclear at Oldbury and Wylfa.
