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Bloomberg
The possible replacement of the UK’s aging nuclear reactor fleet may offer China’s ambitious atomic power companies an outlet for investment and technology.
That could be the driver behind reports over the weekend by London-based Sunday Times that state-owned China General Nuclear Power Corp “made an approach†about acquiring as much as 49 percent in eight UK nuclear power plants owned by Electricite de France SA and Centrica Plc, without saying where it obtained the information. The stake is valued at as much as 4 billion pounds ($5.3 billion), according to the report.
Shenzhen-based CGN spo-kesman Huang Xiaofei said on Monday “as of now, we haven’t conducted related work on it yet†and declined to comment further.
If successful, the deal would deepen CGN’s role in the UK’s energy sector after its high-profile investment in the 18 billion-pound Hinkley Point C project. China has been seeking overseas markets for its nuclear technology amid President Xi Jin- ping’s “One Belt, One Road†initiative, particularly its homegrown next-generation reactor, the Hualong One.
“Investing in UK nuclear plants and starting to build a track record may help CGN to gain more potential new projects in UK, and later in other European countries, which will be beneficial for China to export China’s own nuclear technology,†said Anna Lu, a Hong Kong-based analyst at Daiwa Securities Group Inc in Hong Kong.
POLITICS, SECURITY
The deal would also likely renew concerns about the risks posed by state-owned Chinese companies owning critical infrastructure, which almost derailed the Hinkley agreement in 2016 when Prime Minister Theresa May delayed approval to review security issues.
EDF has been preparing for the replacement of its UK nuclear fleet, acquired when it took control of British Energy Plc in 2008. The plants, which supply about 20 percent of Britain’s electricity needs, are scheduled to either end generation or be decommissioned between 2023 and 2030, according to EDF
Energy’s website.
“Buying minority stakes in old reactors in the UK — showing commitment and cash support — would be wise before it can engage in any new or replacement plant construction,†said Patrick Dai, a Shanghai-based analyst at Macquarie Group.