Three joint ventures have announced plans to develop new nuclear plant in the UK. All are operated by established energy groups from the UK and mainland Europe.
These three groups will act as the Licensees for nuclear new-build, with responsibility for arranging the financing, planning and regulatory approval for new plant.
The UK government is taking a market-led approach to nuclear new-build: all new plant will be wholly financed and constructed by the private sector, with no direct subsidy. This means that each group’s decision to invest will depend on economic conditions and financial factors such as capital costs.
The three development groups are introduced below.
EDF Energy
EDF Energy is proposing to build four Areva EPR reactors, in partnership with energy group Centrica. EDF entered the UK nuclear generation market in 2009 with its acquisition of British Energy, which operates eight formerly state-owned nuclear power stations.
EDF and Centrica are operating through a UK subsidiary called Nuclear New Build Generation Ltd (NNB Gen Co). The joint venture is proposing to build two EPR generators at Hinkley Point, Somerset, followed by another two at Sizewell, Suffolk, with a total capacity of 6.4GWe. EDF will make a final investment decision by the end of 2013.
The procurement process for Hinkley and Sizewell is overseen by NNB Gen Co, and operated by EDF Procurement in Paris. Current requests are generally for large packages of work or the supply of specialised plant. Smaller suppliers are unlikely to prequalify on their own, and will need to form consortia or supply agreements with higher-tier suppliers.
The Hinkley Point C reactor is planned to be the first new nuclear plant in the UK. Preliminary work is already underway. Peak construction activity was initially forecast for around 2014-16 for completion in 2018, but EDF is currently adjusting its timetable. The second reactor is expected to complete around two years after the first.
For more information on construction at Hinkley, including a detailed construction and tender timeline, see the Hinkley supply chain portal managed by Somerset Chamber of Commerce.
For information on construction at Sizewell, see the Sizewell C supply chain portal managed by Suffolk and Norfolk Chambers of Commerce.
EDF is also planning an EPR unit at Penly, northern France, on the same timescale as its first Hinkley unit. Some tenders are likely to cover both Hinkley and Penly.
EDF is currently building an EPR at Flamanville, France: construction started in 2007, with completion currently expected in 2014.
For more information about supplying EDF, see the EDF Sourcing Portal (requires registration) and their pages on UK supplier opportunities.
Horizon Nuclear Power
Horizon Nuclear Power was founded as a 50/50 joint venture between E.ON UK and RWE npower. It has acquired land and agreed connections for Wylfa, Anglesey, and Oldbury, Gloucestershire, with plans to build around 3GWe of new capacity at each site.
In March 2012, E.ON and RWE announced they would not proceed with the new-build plans, blaming difficulties in raising finance for power projects. They are now looking for a new owner for the venture.
Before the sale announcement, Horizon was due to announce which reactor design it would buy in spring 2012, with a final investment decision in 2013. Construction at Wylfa was scheduled for completion by late 2019 or early 2020, with the Oldbury development around six years later.
NuGen
NuGeneration Ltd (NuGen) is a joint venture between GDF Suez and Iberdrola. It has acquired land at Sellafield, Cumbria, and is intending to build up to 3.6GWe new capacity.
NuGen has not yet selected a reactor design. It expects to make a final investment decision around 2015, with a target of commissioning any new station around 2023.
The consortium has not yet released any information on procurement strategy, but says it is committed to maximising the use of UK-based suppliers and employees.
Original partner SSE withdrew from the venture in September 2011. GDF Suez and Iberdrola now hold 50% each.
