5 Years After Fukushima Disaster, the Commission Clears EDF – CGN Nuclear Partnership

A discussion over decommissioning funds was raised during the Midday briefing, as the European Commission announced the approval of merger between Électricité de France (‘EDF’) of France and China General Nuclear Power Group (‘CGN’) of China in relation to the development, construction and operation of three nuclear power plants in the UK at Hinkley Point, Sizewell and Bradwell. The approval took place under the EU Merger Regulation the partnership, with the Commission investigating the vertical link between CGN’s activities in the market for design and manufacture of "nuclear islands” and the joint ventures’ of future activities in the generation and wholesale supply of electricity.

EDF and CGN sign a Strategic Investment Agreement for joint investmentfor two EPR reactors at Hinkley Point C, that covers wider UK partnership to develop new nuclear power stations at Sizewell and Bradwell on 21 October 2015 in London.

In conclusion to the approval, the Commission raised no concerns, as other nuclear-related markets where where CGN and other Chinese State-owned companies are active, would not have the ability to shut competitors out of these markets. Asked about the lack of decommissioning funds, as a connection to the merger’s approval, Ricardo Cardoso, Spokesperson for Competition gave the floor to Anna-Kaisa Itkonen, Climate Action and Energy Spokesperson, that announced the Nuclear illustrative programme report publication in the forthcoming weeks.

As 5 years from Fukushima nuclear power plant disaster anniversary is today, Itkonen linked the "NaTech disaster” memory with the actions European Commission plans to take in 2016. As Itkonen mentioned, Nuclear illustrative programme, is a requirement of Article 40 of the European Treaty and "provides a photograph of the situation of nuclear energy use and decommissioning in Europe. The 2016 edition will cover the post-Fukushima safety upgrade investments and those related with long-term operation with existing nuclear power plants, as well as those related to decommissioning”, added Itkonen.

Itkonen refused to answer to leaks over more than €50 billion lack of funding on France’s decommission funding. On the issue of state funds used as decommissioning funds from France, Cardoso said to NE that there is no ongoing investigation on the issue and therefore, the European Commission cannot comment.