Enel will take part with a stake of 12.5% in the construction and operation of the Flamanville nuclear plant, which is expected to start operations in 2012 with a capacity of 1,600MW. The deal will also give Enel the option to take part with an identical 12.5% stake in the subsequent five European pressurized water reactor (EPR) projects planned in France.
The agreement also gives Enel immediate access to virtual baseload capacity. As an advance on the EPR capacity generated by the Flamanville power plant, Enel will gain access to 600MW commencing in 2008, with progressive increases up to a total of 1,200MW in 2012.
The Italian utility may also take part with a 30% to 40% stake in EDF’s new combined-cycle power plants currently being built in France, representing a capacity of about 1,400MW. In return, EDF would receive a corresponding stake in Enel’s similar new power plants in Europe and the Mediterranean basin.
Fulvio Conti, CEO of Enel, said: Today is an important date in strengthening co-operation between our two groups that will contribute to the development of a more open, competitive European energy market. For Enel in particular, this means to gain access to the most advanced nuclear technology available today and to lay the foundations for establishing a significant presence in France.
After the first EPR plant is completed with the participation of Enel, the Italian group would provide EDF with access to its nuclear capacity in Europe or to capacity with similar characteristics.
