EDF, E.ON and RWE npower acquire sites to build nuclear reactors in UK

30 April 2009

In a bid to build new generation nuclear plants to replace its aging nuclear reactors, the UK government, has successfully completed the auction of three new nuclear sites for a combined value of £387 million, aftr a seven-week long bidding by rival power utilities.

A consortium of German-owned E.ON and RWE npower acquired two sites, one at Wylfa in Anglesey spread over 438 acres of land and another at Oldburyin Gloucestershire across 119 acres. The French state-controlled energy company, EDF acquired 493 acres of land at Bradwell in Essex.

All the acquired sites were adjacent to existing nuclear plants and were sold in an eBay style auction, which went on for almost a month and ended yesterday.

Bidding for the three sites was fiercely contested but the third consortium led by Spanish utility Iberdrola pulled out on Monday night as the price had more than nearly tripled and the combined auction of the three sites was not expected to raise more than £100 million as the government had put a floor price of £35 million on each site.

The owner of the sites, the Nuclear Decommissioning Authority's (NDA) acting chief executive Richard Waite, said, "This complex process started in March 2008 when the NDA requested expressions of interest for its assets. The project team developed an innovative solution designed to maximise value which has been completed on schedule.''

''The sale of these three sites is worth up to £387 million which the NDA will use to help fund the cost of decommissioning and further its core mission," he added.