In the Financial Times, sources close to the deal said the state-owned CGN, wants to take greater operational control of any new plant it invests in, including Hinkley Point C, while it is targeting a joint operator role at a new plant at Sizewell.
Stephen Hunt, analyst at UBS, said the discussions between EDF and CGN comes down to EDF getting the capital to invest in the proposed Hinkley Point C plant, which is estimated to cost £1.4 billion.
Hunt said: “Clearly, if they are looking to take a substantial stake in the project, it’s understandable they (CGN) would want a bit more control and operational role there.”
Roland Vetter, head of research at CF Partners, added that alongside the investment, EDF would like a partner to share the project risk.
He said: “For EDF it is very simple, the need somebody to put the capital into it and they would like to have someone to share the development risk because it is a lot for one company to take on.”