Centrica is apparently no longer keen on the joint venture, while EDF could sell part of its stake in the project in an attempt to boost its finances.
Utility Week understands that Centrica is unsure whether to take up the option of a 20 per cent stake in EDF Energy’s new nuclear venture in the UK, which includes a proposed reactor at Hinkley Point.
New nuclear investment is not expected to make a return for at least eight years. Investors in Centrica are reportedly eager to pursue projects that see a return over a shorter period and carry less development risk. Centrica bosses have also been put off the nuclear programme because they are not convinced it would offer them the protection they seek from rising wholesale gas prices.
Investment from CGN would give the nuclear project the necessary funding for it to continue, and it would ease the development pressures on EDF, which is struggling with difficult market conditions in France.
EDF and CGN attempted to form an alliance in 2011 to share technical expertise, which fell through for political reasons. They are in partnership to build two European pressurised reactors in Guangdong province, China.
by Mathew Beech