By Tara Patel
Nov. 5 (Bloomberg) -- Electricite de France SA, Europe’s biggest power generator, came under pressure from the French government to increase the number of nuclear reactors online as concerns grow over the reliance on imports.
EDF must “raise the rate of availability” of reactors, Environment and Energy Minister Jean-Louis Borloo said in an interview on RMC radio. Prime Minister Francois Fillon in an interview with Le Monde said the rate has dropped to 80 percent, which isn’t “normal” and caused by technical issues and EDF’s maintenance schedule.
EDF, GDF Suez SA and other utilities may import more power in the next three months as the balance of supply and demand has become “significantly less favorable,” according to grid operator Reseau de Transport d’Electricite. Availability of generation is expected to be “significantly lower” than last winter, the operator said last week.
State-controlled EDF, operator of the country’s 58 nuclear reactors, has increased its reliance on power imports to meet peak demand during cold snaps and heat waves.
“Nuclear power production in 2009 will be significantly lower than in 2008,” Chief Executive Officer Pierre Gadonneix said at shareholders’ meeting today. The drop is due to maintenance delays caused by labor disputes this year and technical problems, he said. Measures are being taken to ensure supply over the winter months and to improve the organization of maintenance, the CEO said.
The company should have made more provisions in past years to “accelerate spending” on maintenance, Borloo said.
Power Imports
French companies may import as much as 4,000 megawatts of power “for several weeks” from the middle of November if temperatures stay at the seasonal average. Imports may rise to 9,000 megawatts in the event of a sustained cold snap and the grid may have to resort to load shedding, according to RTE.
The grid also warned of a “moderate” risk of power cuts.
EDF last month said it would fix a defect in back-up generators at 15 reactors during regular maintenance and has also repaired steam generators at 16 reactors.
The company raised 1 billion euros in bonds in June to help finance a 7.5 billion-euro investment plan in France this year in part aimed at extending the lifetime of reactors.
EDF ran its reactors at an availability rate of 79.2 percent last year, compared with 80.2 percent in 2007 and 83.6 percent in 2006. The utility said today it’s seeking to raise the rate to 81 percent this year and to 85 percent by 2011.
“We remain on a trajectory to reach 85 percent in the medium term,” Chief Financial Officer Daniel Camus told reporters after today’s meeting. Details about availability will be provided in a quarterly statement on Nov. 12, he said.
EDF’s 59th nuclear reactor at Flamanville in Normandy, which will cost 4 billion euros, will start up in 2012 and begin selling power in 2013, Gadonneix said.
To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net
Last Updated: November 5, 2009 10:09 EST
HOME
