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Posted by kaori 03/27/2009 @ 02:14

Tags : enel, electric power, energy and water, business

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Enel's Endesa enters Portugal's domestic power market - Reuters
MADRID, May 26 (Reuters) - Enel's ENEI.MC Spanish unit Endesa (ELE.MC) said on Tuesday it has started to offer electricity to Portuguese households, in a move which will put it in direct competition with incumbent EDP (EDP.LS)....
Enel Sees Negative Credit Watch Removed After Cap Hike-Report - Wall Street Journal
ROME (Dow Jones)--Enel SpA (ENEL.MI) expects rating agencies to remove its large debt from credit watch negative after rights issue starting June 1, the company's finance director said in an interview published Saturday. Claudio Machetti declined to...
UN carbon market a success despite criticism: Enel - Reuters
BEIJING (Reuters) - The architects of a new global climate change deal should not lose sight of the achievements already made, despite calls for wholesale reform, a senior executive with Italian power giant Enel said on Saturday....
Vatican Radio to carry advertisements - Times Online
The first advertisements will be for the Italian energy company Enel, and will be broadcast in five languages: Italian, English, Spanish, French and German. Until now the Holy See has argued that the Vatican Radio's 40 languages and its geographical...
Fiat, Banco Santander, Areva, Enel : Europe Equity Preview - Bloomberg
Enel SpA (ENEL IM): The utility company's dividend will remain “extremely attractive” after a capital increase of 8 billion euros ($11 billion), Finance Director Claudio Machetti told Milano Finanza. The stock rose 5 cents, or 1.1 percent,...
Total To Partner With Enel To Explore For Egyptian Gas - Wall Street Journal
PARIS (Dow Jones)-- French oil major Total SA (TOT) said Monday it has won a 90% interest in an Egyptian offshore gas exploration block, with Italian utility Enel SpA (ENEL.MI) as its partner. Total will be the operator and Enel plans to take 10%,...
Libya Looks at Taking Stake in Italy's Enel - Wall Street Journal
By STACY MEICHTRY and LIAM MOLONEY ROME – Libya's sovereign-wealth fund may take a minority stake in Enel SpA as part of the Italian utility's planned capital increase, according to Enel's chief executive and Libya's ambassador to Italy....
Political warmth aids Libyan spending spree in Italy - Alibaba News Channel
It is now eyeing power company Enel SpA and is in talks for a joint fund with bank Mediobanca SpA. Libyan shopping in Italy with petrodollars has only just begun, analysts say, boosted by closer political ties as Italy begins paying reparations to...
Enel 1Q Net Pft Jumps On Put Option Gain; Net Debt EUR50.8B - Wall Street Journal
By Liam Moloney Of DOW JONES NEWSWIRES ROME (Dow Jones)--Enel SpA (ENEL.MI) Tuesday said first-quarter net profit doubled on the year helped by foreign assets, strong Italian power margins and a EUR970 million boost from the value of a put option,...
Enel sees end-May rights issue go-ahead -source - Reuters
MILAN, May 8 (Reuters) - Enel SpA (ENEI.MI) should get the green light from market regulator Consob for its 8 billion euros ($10.7 billion) rights issue by the end of this month, a source close to the matter told Reuters. "That way a board meeting to...



Enel (Ente Nazionale per l'Energia eLettrica) is an Italian energy provider and the third largest energy provider in the world. Formerly a state-owned monopoly, it is now partially privatised with Italian government control. Annual revenue is €38.153 billion.

Its stock is traded on the Milan Stock Exchange under the symbol 'Enel'. In late 2007, Enel began formal proceedings to delist its American Depositary Receipts from the New York Stock Exchange. The formerly sponsored depositary receipts represented five shares of ordinary stock, each, and the now unsponsored ADRs trade OTC (over the counter) in the US with very light trading volume under the symbol 'ENLAY', representing one share of ordinary stock, each. (While on the NYSE and traded as a sponsored ADR, its stock formerly traded under the symbol 'EN'.) Dividend yield is currently around 19% (2008).

Enel is Italy’s largest power company, and Europe’s third-largest listed utility by market capitalization. Listed on the Milan stock exchange since 1999, Enel has the largest number of shareholders of any European company, at some 2.3 million. It has a market capitalisation of about EUR 50 billion at current prices. In 2007 it acquired 67.05% of Spain's main energy provider Endesa and in february 2009 completed the full acquisition of it.

Enel produces and sells electricity mostly in Europe, North and Latin America. In the power business, Enel has 50,776 megawatts (MW) of generating capacity and has 32 million electricity customers. Enel is also the second-largest Italian distributor and vendor of natural gas, with over 2.3 million customers and a 12 % market share.

Enel still controls most of the low voltage wires in Italy but due to the Decreto Bersani has been forced to create Terna in 1999 and sell it on, keeping only around 5% of it in 2008. Terna owns about 90% of the voltage wires in Italy.

In the first week of March 2008, Enel has begun building the world's first hydrogen-powered thermal powerplant near Venice. The hydrogen will be harnessed from the byproducts of the nearby oil refinery of Porto Marghera. The projected output is in the megawatt range.

Revenues: €38,513 million, (€33,787 million in 2005, +14.0%).

Ebitda: €8,019 million, (€7,745 million in 2005, +3.5%); net of a provision of about €400 million for an operating excellence plan, in 2006 Ebitda rose by 8.7% compared with 2005.

Group net income: €3,036 million,(€3,895 million in 2005, - 22.1% Net of Wind and Terna contribution, 2006 Group net income grew 1.4% compared to 2005).

Net financial debt: €11,690 million (€12,312 million at 31 December 2005, -5.1%).

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Enel Agichiol Wind Farm

The Enel Agichiol Wind Farm is a proposed wind power project in Tulcea County, Romania. It will have 210 individual wind turbines with a nominal output of around 1 MW which will deliver up to 210 MW of power, enough to power over 83,160 homes, with a capital investment required of approximately US$ 473 million.

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Costa v. ENEL

Official insignia of the European Court of Justice

Flaminio Costa v. ENEL was a landmark decision of the European Court of Justice which established the supremacy of European Union law over that of its member states.

Mr Costa was an Italian citizen opposed to nationalising the Italian energy company ENEL, because he had shares in it. He refused to pay his electricity bill in protest, and argued that nationalisation infringed EC law on the State distorting the market. The Italian government believed that this was not even an issue that could be complained about by a private individual, since it was a national law decision to make.

The Court ruled in favour of the government, because the relevant Treaty rule on an undistorted market was one on which the Commission alone could challenge the Italian government. As an individual, Mr Costa had no standing to challenge the decision, because that Treaty provision had no direct effect. But on the logically prior issue of Mr Costa's ability to raise a point of EC law against a national government in legal proceeding before the courts in that Member State the ECJ disagreed with the Italian government. It ruled that EC law would not be effective if Mr Costa could not challenge national law on the basis of its alleged incompatibility with EC law.

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Enel Corugea Wind Farm

The Enel Corugea Wind Farm is a proposed wind power project in Tulcea County, Romania. It will have 70 individual wind turbines with a nominal output of around 1 MW which will deliver up to 70 MW of power, enough to power over 27,720 homes, with a capital investment required of approximately US$ 158 million.

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Nuclear energy in the European Union

Location of Nuclear energy in the European Union

The nuclear energy in the European Union accounts approximately 15% of total energy consumption. The energy policies of the European Union (EU) member countries vary significantly. As of January 2008, 15 of these countries have operating reactors that produce nuclear energy. The countries with reactors include Belgium, Bulgaria, Czech Republic, Finland, France, Germany, Hungary, Lithuania, Netherlands, Romania, Slovakia, Slovenia, Spain, Sweden, and United Kingdom. Countries such as France and Finland embrace nuclear technology, while Germany has begun to phase its use out.

The EU-27 in 2005 satisfied its primary energy consumption with 36.7% oil, 24.6% gas, 17.7% coal, 14.2% nuclear, 6.7% renewables and 0.1% industrial waste. In 2006, nuclear energy provided the largest source (29.5%) of electricity with a production of 990 TWh, and an installed capacity of 134 GWe (17,6% of all installed capacity). It was the leading electric power source in Belgium, France, Hungary, Lithuania and Slovakia. France, where nuclear is also the largest primary energy source, produced 450 TWh in 2006 - 45% of the EU's total. Denmark, Estonia, Ireland, Greece, Italy, Cyprus, Latvia, Luxembourg, Malta, Austria, Poland and Portugal did not produce any nuclear energy. As of September 2008 there are 146 nuclear reactors in the European Union. 125 units of these are located in eight of the western EU countries. Total nuclear energy generation from EU power plants increased by 25% from 1995 to 2005. The majority of this growth occurred in the 1990s. Installed capacities decreased by 2.6% since 1990 and relative contribution to the overall electricity mix decreased from 30,8% in 1990 to 30,2% in 2005 .

European nuclear policy is governed by the EURATOM treaty. Therefore regular European policy, on for example environment or the market does not apply to issues in the nuclear field. In the EU level, DG TREN is the main authority for EU nuclear issues, and the European Council is the locus for intergovernmental decisions. The European Parliament doesn't have authority in the field of nuclear other than the right to ask questions to the Commission.

In case of a radiological emergency, the EU will trigger its ECURIE alert system, which immediately notifies all national authorities of an impending nuclear hazard. This system was installed after the experience with the Chernobyl disaster.

The FP7 research program has a special branch which is governed under the EURATOM treaty, which deals with community research into nuclear issues. The European Commission, or rather, the JRC is owner of the high flux reactor (HFR) in Petten, NL.

In November 2007 the European Nuclear Energy Forum (ENEF), or the Bratislava/Prague forum, was launched to bring the policy on nuclear issues in the EU forward. The forum has workinggroups on "Risks", "Transparency" and "Opportunities". Policymakers, industry and NGOs are participating.

At present, the European Commission is investigating the issue of Nuclear liability, and is seeking how to harmonise the Vienna Convention on Civil Liability for Nuclear Damage and the Paris Convention on Third Party Liability in the Field of Nuclear Energy, as the differing caps on liability constitute a distortion of competition between operators in members states.

The Commisisons's SET plan mentions the "sustainable nuclear fission initiative" to develop Generation IV reactors as one of the research priorities of the European Union.

On average, the EU creates about 40,000 cubic meters of radioactive waste per year. Eighty percent of that is short-lived low-level radioactive waste. France and the United Kingdom are currently the only EU countries that reprocess waste . However, the reprocessing of spent fuel in the UK is being phased out but is expected to continue in France. The countries that currently use this reprocessed fuel (MOX) include Germany, Belgium, France and Switzerland. Reprocessing spent fuel significantly decreases the amount and it produces the by-product plutonium. Although plutonium is regularly related to nuclear weapons, the plutonium created from these reprocessing facilities has too much of the isotope Pu-240, making them inefficient for nuclear weapon use.

At present, the High level group on safety and waste management a body with nuclear regulators from all memberstates, is discussing if and how nuclear regulation in the European union could be harmonised.

The European nuclear industry works together in the Sustainable nuclear energy technology platform (SNE-TP) to develop Generation IV nuclear reactors. The interests of the EU industry are being represented by the Foratom-trade group.

European public opinion is reticent towards nuclear energy. However, nuclear energy makes a positive contribution to the energy-independence of the EU and to the security of supply. Also, in order to meet the Kyoto Protocol requirements in reducing Greenhouse Gas emissions countries find it imperative to replace fossil fuel power plants with cleaner energy sources, of which nuclear power is one possibility. Finally, if the future demand for electricity is to be satisfied, the EU cannot eliminate nuclear power as an energy source.

But the negatives of nuclear energy include the high cost of building nuclear power plants. And there is also the problem of final disposal of nuclear waste.

Nuclear power is on the average the least desired energy option in the EU in the year 2006. Only 20% of the population sample is in favour of nuclear power, less than for fossil fuels (coal 26%, oil 27%, gas 42%) and much less than for any kind of renewable energy: from lowest in favour of biomass 55%, through to highest in favour of solar energy 80%().

Considerable differences exist between populations in member states. In six countries of EU25 (SE, SK, LT, HU, CZ, FI) the voices in favour outnumbered those against, with Sweden with 41% in favour and 20% opposed at the top of the list. In the remaining 19 member countries the anti-nuclear sentiment clearly prevails, from Belgium where 22% are in favour and 32% opposed down to Austria at 5% in favour 80% against.

The share of balanced views (neither in favour nor opposed) is high in the majority of member states, with a few exceptions where the public opinion has swung all the way against nuclear energy usage. While balanced views are primarily in the 30 - 40% range, in the four most anti-nuclear states (Malta, Cyprus, Greece and Austria) the share of balanced views is in the 10-20% range.

As for the opinion on the three most important energy sources in 30-years' time, nuclear energy captured some nominations. Out of 75 possible nominations 52 were taken by renewable energy sources (solar highest with 21 nomination, other in order of frequency: wind, hydroelectric and biomass). Nuclear energy captured 14 nominations (of which 5 in the first rank), with fossil fuels (oil and gas) only 9 nominations, in trailing positions.

The future plans for nuclear power in the EU range from maintaining or increasing its usage (UK) to gradual phaseouts (Sweden, Belgium, Germany). In Germany, a provisional shutdown schedule for nuclear plants has the last plant, Neckarwestheim, closing in 2022.. The current Swedish gouvernement has recently changed the previous official standpoint of phasing out nuclear energy.

Based on energy requirements for the EU, some see shutdowns across Europe as unlikely.

The European nuclear fleet is ageing, and to merely maintain the current nuclear generation capacity requires considerable effort.

Majority of Europeans support an active role for the EU in harmonizing legislation between the EU member countries and facilitating cooperation between experts.

In 1962, Belgium received its first nuclear reactor – 11 MWe pressurized water reactor - from the United States. The country’s first commercial nuclear reactor began operating in 1974. Currently, Belgium has seven nuclear reactors operating in the country with a net MWe of 5,761. Electricity consumption in Belgium has increased slowly since 1990 and Nuclear energy provides 54%, 45 billion kWh per year, of the country’s energy.

A national agency is responsible for radioactive waste management, including transport, treatment, conditioning, storage, and disposal. The main disposal facility is the Mol-Dessel site, which stores short-lived intermediate-level waste and high-level waste. Several shipments of reprocessed Belgian spent fuel, from France, have also been shipped to the Mol-Dessel site.

In the year 2000, a government appointed commission reported that nuclear energy was important to Belgium and recommended further development. However, a January 2003 Act prohibited building new nuclear power plants and limited the operating lives of the plants to 40 years. The 40-year operating life has the first plant closing in 2014 and the last plant in 2025. However, the electricity and gas regulator (CREG) can override this Act if Belgium’s energy security is threatened. In the 2007, the Belgian Commission on Energy said that the use of nuclear energy is imperative to meet CO2 requirements and maintain economic stability. Furthermore, the commission believed that energy prices would double without the use of nuclear energy. The commission finally recommended that the operating lives of the seven nuclear reactors should be extended.

The Bulgarian government has favored nuclear energy to generate electricity since 1956 and its first commercial nuclear reactor began to operate in 1974. Currently, the two operating reactors produce a net MWe of 1,906 and two more reactors are under construction and will be completed by 2014, with net capacities of 1,900 MWe. The two operating reactors provide approximately 35% of the country’s electricity.

Bulgaria had four nuclear power plants until December 2006, when it shut down two of its older reactors because they did not conform to IAEA safety criteria. Furthermore, the EU offered membership and EUR 200 million if Bulgaria shut down the two reactors. However, in 2003 and 2007, the World Association of Nuclear Operators deemed that the two units met all international standards for safe operation. Bulgaria still shut down the reactors, although 75% of the population voted against the shutdown, in order to obtain EU membership. Prior to the shutdown of the two reactors, Bulgaria was produced 44 billion kWh and exported 7 billion to Greece, Turkey, Serbia, and Macedonia.

Bulgaria is building two new nuclear reactors in Belene, Bulgaria with approximately 1,000 MWe capacities. The two reactors will be similar to new reactors built by Atomstroyexport in India and China. These reactors have satisfied stringent Western European standards and are more acceptable in the EU than the two shutdown reactors.

Bulgaria has a state agency in charge of radioactive waste disposal. Under a 2002 agreement, Bulgaria pays Russia $620 thousand/ton to reprocess spent fuel. The country also spent EUR 49 million to construct a new storage facility and has plans to build another facility by 2015.

The Czechoslovak government completed its first nuclear power plant – a gas-cooled heavy water reactor – in 1972 in Bohunice. The country’s first commercial nuclear power plant began operating in 1985, and the government is still committed to nuclear energy today. The Czech Republic currently has six nuclear reactors with a net MWe of 3,472 and plans to build two more 1,500 MWe reactors by 2020. According to data from 1990 to 2005, the Czech Republic posted the largest increase in nuclear energy capacity (114%) and energy production (96%) of any EU country. Furthermore, the Czech Republic exported 24,985 GWh in 2005.

The Czech Republic currently has no state policy on storage or reprocessing of nuclear waste but leaves the responsibility on the Czech Power Company (CEZ). The CEZ does not believe reprocessing is economic and stores spent fuel until the Radioactive Waste Repository Authority (RAWRA) assumes responsibility for it. The RAWRA will select a permanent location for storage by 2015 and construction will begin on this site after 2050.

Between the years, 1977-1980 Finland built four nuclear reactors, which are still in service today. The four reactors had an output of 2,696 MWe in 2006, which accounts for 27% of the electricity needs of the country. Finland’s four nuclear reactors, considered as the world’s most efficient, have average capacity factors of 94%. Originally, Finland’s Olkiluoto 1 & 2 provided 690 MWe in the period 1978 to 1980, but upgrades over the years have each reactor producing 870 MWe. The country is also building a fifth nuclear reactor with a completion date in 2011 and discussion has begun for installing a sixth reactor.

Responsibility for storage and disposal of nuclear waste remains with the power companies. Prior to 1996, Finnish companies would export nuclear waste to Russia. However, a Finnish law passed in 1996 prohibited the transport of nuclear waste abroad. With this law, Finland became the first country that decided to encapsulate spent nuclear fuel into deep repositories. Repository construction is to begin in 2012 with completion by 2020. Once in operation, the process will involve putting twelve fuel assemblies into a boron steel canister and enclosing it into a copper capsule. Each capsule will then be placed in its own hole in the repository and packed with bentonite clay. The estimated cost of this project is about EUR 818 million, which includes the cost of construction, encapsulation, and operating costs. The State Nuclear Waste Management Fund has saved approximately EUR 1.4 billion from charges for generated electricity.

By building its new reactors and building the storage facility for nuclear waste, Finland will reduce its dependence on Russia for energy, which currently provides 70% of Finland’s energy needs. Furthermore, the construction of new nuclear power plants will help the country better meet its greenhouse gas targets. The new reactors will be the first built in Western Europe since 1991.

Through most of the 1970s France was a net electricity importer. In 1974, after the first oil price shock, France decided to expand rapidly its nuclear power capacity to become energy independent. Currently, France has 59 nuclear reactors, operated by Electricite de France (EDF), from which it creates 78% of its energy or 63,363 MWe. France also produces enough surplus electricity that it is the world’s largest net exporter of electricity and made about EUR 3 billion from selling to other countries. Over the past decade, those exports have amounted to 60-70 billion kWh each year and electricity has become its fourth largest export. Due to its nuclear energy development, France has almost the lowest cost of electricity in Europe and very low CO2 emissions per capita from electricity generation. As of 1993, France’s nuclear power program has cost it about FF 400 billion.

France established a law in 2005 requiring that nuclear power be central to energy policy and security. Under this law, France would build a European Pressurized Water Reactor (EPR), also known as third-generation nuclear reactors, by 2015, of which it may decide to build forty more. Each EPR reactor would produce 1,600 MW of electricity versus the 900 MW that current reactors produce. The EPR reactor was also recognized as safer and more efficient. In August 2005, EDF announced that it wanted to replace all of its reactors with EPR reactors.

EDF reprocesses approximately 850 of the 1,200 tons of used fuel each year. The reprocessed spent fuel is made into plutonium. The plutonium is then converted into fresh mixed oxide (MOX) fuel, which is used in over 35 reactors across Europe. These reactors can load approximately 20-50% of their cores with the MOX fuel.

Public opinion concerning nuclear energy has remained positive in France. In Civaux, France, where a planned nuclear power plant was to be built, the people embraced the fact that their city was chosen as the site. Claude Mandil, the General Director for Energy and Raw Materials at the Minister of Industry , noted three primary reasons why the French people like nuclear power. First, the people of France enjoyed the independence from foreign energy. Second, they like large technological developments to occur in their country. Finally, the government instilled the benefits of nuclear energy into the people.

In 1974, Germany had strong support for nuclear energy following the oil price shock of 1974. The first nuclear reactor was commissioned in 1975. However, after the Chernobyl accident in 1986, only one nuclear power plant was opened in 1989. In 1986, the government passed a resolution to abandon nuclear power within ten years. In 1990, when Germany was reunited, all Soviet built reactors were dismantled due to safety concerns. In 1998, the coalition government voted to begin phasing out nuclear energy. In the year 2001, an agreement was reached to limit operational lives of nuclear power plants to 31 years, which deferred any closures. Currently, Germany has 17 nuclear reactors that produce 20,339 MWe or one-third of the country’s energy needs. Siemens-KWU built all 17 of the reactors, six of which are boiling water reactors (BWR) and eleven are pressurized water reactors (PWR).

In the past, Germany mined uranium in mines around the country. However, all uranium is now imported from other countries. Thirteen of Germany’s reactors can use Mixed Oxide (MOX) fuel, which is imported from reprocessing countries. The Atomic Energy Act in 1976 made permanent disposal of spent fuel the responsibility of the federal government. Interim storage was still the responsibility of the utilities. Until 1994, utilities were required to reprocess and recycle spent but usable fuel. From 1994 to 1998, the federal government allowed for either direct disposal or reprocessing. Finally, after 1998, the government required direct disposal of all spent fuel. The permanent storage facility for spent fuel is located in the state of Lower Saxony, in a salt dome at Gorleben. The construction on the final repository will be complete by the year 2025. Finally, Germany will recover waste from past nuclear reprocessing and store it into the repository.

German public opinion strongly supports nuclear energy. In 1997, 81% of Germans wanted operations to continue at nuclear power plants, up from 64% in 1991. The majority of the citizens also believe nuclear energy will remain in wide use in Germany. In 2007, a poll found that 67% of Germans opposed the plan to phase out nuclear power plants.

The first Hungarian nuclear reactor was built at Csilleberc in 1959. Construction on the first commercial nuclear reactors began in 1975 after the oil crisis and the first was completed in 1982. Currently, Hungary has four nuclear reactors with a net output capacity of 1,826 MWe. Originally, these plants had expected lives of 30 years; however, the Hungarian government decided to complete 20-year life extension projects on the reactors. The cost of these projects will amount to approximately $900 million but will also increase total capacity to 2,000 MWe. Hungary also had plans to build two more reactors with capacities of 950 MWe each but cancelled the plans due to decreased power demand in the early 1990s.

Hungary receives all of its fuel, uranium, from TVEL in Russia. Spent fuel normally is disposed without reprocessing, though there are instances of spent fuel sent to Russia for reprocessing. For the spent fuel that is not reprocessed, it is kept at the nuclear reactor site for five years in pools and then sent to dry storage. Additionally, in 2005 the residents of Bataapati, in the south of the country, approved construction plans for low and intermediate-level waste storage facility. Parliament approved this construction in November 2005. The costs of this construction will be covered by the Central Nuclear Financial Fund, the fund the nuclear power companies pay into.

Currently, plans do not exist for construction of a new nuclear power plant. Traditionally, the public has little input into nuclear power, outside the vote for the storage facility. The government of Hungary remains committed to nuclear power to serve its future electricity needs.

Italy has built several nuclear reactors from 1963-1990, but after Chernobyl, the country stopped all work on its nuclear program. Currently, the majority of Italy’s electricity is produced gas, oil, coal, and hydro. Italy also imports about 16% of its electricity need from France for 6.5 GWe, which makes it the world’s biggest importer of electricity. Due to its reliance on expensive fossil fuels and imports, Italians pay approximately 45% more than the EU average for electricity.

In 2004, a new Energy Law brought the possibility of joint ventures with foreign companies to build nuclear power plants and import electricity. Public opinion on nuclear power was positive, as Italy’s younger generations embraced nuclear energy. In 2005, Italy’s power company, ENEL made an agreement with Electricite de France for 200 MWe from a nuclear reactor in France and potentially an additional 1,000 MWe from new construction. As part of the agreement, ENEL received a 12.5% stake in the project and direct involvement in design, construction, and operation of the plants. In another move, ENEL also bought 66% of the Slovak Electric utility that operates six nuclear reactors. As part of this agreement, ENEL will pay the Slovak government EUR 1.6 billion to complete a nuclear power plant in Mochovce, which has a gross output of 942 MWe. With these agreements, Italy has managed to access nuclear power without placing reactors on Italian territory.

There was a uranium enrichment facility in Bosco Marengo but which is being decommissioned by Sogin, a spinoff of ENEL.

In 1978, began construction on two RBMK reactors (1,380 MWe net) with 30-year lives at Visaginas. The light-water, graphite-moderated reactors had a similar deign to those at Chernobyl. The nuclear power plant began operating in 1983, but the first reactor was decommissioned in 2004. Currently, Lithuania has one nuclear reactor that produces about 70% of its electricity or net MWe of 1,185. Decommissioning of the second reactor will occur in 2009. Originally, Lithuania built these reactors to export electricity to its neighbors, with 42% of electricity exported in 1989. This number fell through the 1990s as domestic demand increased.

In 1994, Lithuania accepted US$36.8 million from the European Bank for Reconstruction and Development's Nuclear Safety Account to improve safety at the Visaginas site. Under the grant, both the reactors had to be closed within 15-20 years. Moreover, in order to join the EU, Lithuania had to decommission one reactor immediately and the second by 2009. The EU agreed to pay for decommissioning costs and some compensation through 2013. Strong public opposition followed, because electricity rates will rise 70% from 2007 to 2010 to cover the increased costs from reduced nuclear energy capabilities.

In 2006, Prime Ministers of Lithuania, Latvia and Estonia signed a communiqué which invited state-owned energy companies in Lithuania, Latvia and Estonia to invest in the design and construction of a new nuclear power plant in Lithuania to replace the two closed units at Ignalina. The plant will cost around €6 billion, and most likely will have a capacity of 3,200 MWe. It will become operational after 2015.

The Radioactive Waste Management Agency, established in 2001, is responsible for disposal of all radioactive waste from the Ignalina plant during operation and decommissioning. A site near the plant has been identified for storage of low and intermediate-level waste. The government is in the process of building a permanent repository, which will be complete in 2015.

Currently produces the majority (95%) of its energy burning coal producing 32 GWe electricity. Poland also has the largest coal reserves in the EU at 14 billion tons. Poland has recognized that it needs nuclear energy in order to phase out ageing coal power plants, meet growing electricity demand (90% increase by 2025) and CO2 emissions standards.

In the 1980s, Poland had the Żarnowiec Nuclear Power Plant with four 440 MWe reactors under construction but due to post-Chernobyl disaster fears and lack of popular support the project was abandoned at a late stage. In 2005, the Polish cabinet decided to move away from emissions producing technologies and move towards nuclear power. In 2006, the new Prime Minster noted the need to build nuclear power plants and suggested the use of French Technology.

In 2006, a feasibility study found it optimal to build a nuclear power plant with an 11.5 GWe capacity, which was unaffordable in the immediate future. Therefore, Poland made the decision to build a 4.5 GWe nuclear power plant by 2030. In 2007, a draft energy policy proposed a 10 MWe nuclear capacity by 2030 to provide 10% of electricity. The Polish government, in 2005, did not deem it feasible to have any nuclear power until at least 2020. Due to lack of expertise, they estimated ten years to for investment and construction and five years of public campaigning.

In July 2006, Poland joined Lithuania, Estonia, and Latvia to build a new nuclear power plant to replace the Ignalina units being shut down due to pressure from the EU. Poland would invest 22% with these other countries into the project, which will be operational by 2015. The total costs of the project amounts to EUR 6 billion. Poland is guaranteed to have 1,200 MWe from the power plant and is in the process of upgrading transmission capacity between Lithuania and Poland.

In a public opinion poll, 60% of the population supported construction of a nuclear power plant in Poland to reduce its dependence on foreign sources of energy. Additionally, 48% supported construction of a nuclear power plant in their neighborhood, citing local benefits that include lower energy costs.

In 1958, the Czechoslovak government built its first nuclear power plant – gas-cooled heavy water reactor – at Bohunice. Construction ended in 1972 when the plant became operational but the government shut down the plant in 1977 following a severe accident. Currently, Slovakia has five operational reactors, commissioned between 1980 and 1999. The net MWe is 2,064 and nuclear energy produces approximately 50% of the country’s electricity. Of the five reactors, the three older ones are scheduled for shutdown between 2008 and 2025. However, the government is committed to nuclear energy and two more reactors are under construction.

Prior to acceptance into the EU, Slovakia had to shut down two of its older reactors, because they did not meet European standards. Slovakia spent significant amounts to achieve western standards, but the EU insisted on the shutdowns. The first plant closed in 2006 and the next is scheduled to close in 2008. The closure of these units, prior to the completion of two new reactors will leave the country short on power and Slovakia became an energy importer after the first plant was shut down.

The two new reactors have a net MWe of 840 and completion dates of 2012 and 2013. Italian ENEL purchased 66% of the state power company to help complete the reactors. Additionally, the government has floated the idea of building a fifth nuclear reactor by 2025, which would cost approximately EUR 3 billion.

Radioactive waste in Slovakia is disposed without reprocessing. The spent fuel stays at the reactor site; however, some spent fuel has been exported to Russia. Slovakia has also begun a search for a high-level waste repository and established a fund with approximately EUR 775 million to build it.

In 1964, Spain began construction on its first of three nuclear reactors and completed construction in 1968. This became the first commercial nuclear reactor. In the 1970s, Spain began construction on seven second generation reactors, but only completed five. In the 1980s, construction on third generation nuclear power reactors began but construction was only completed on three. Currently, Spain has eight nuclear reactors producing 20% of the country’s electricity or 7,442 net MWe. Spain imports approximately 2% of its energy from France but exports the same amount to Portugal.

Spain has dismantled two nuclear reactors in the past 18 years. The first closed in 1990 due to a fire in a turbine and repairs were determined not economic. The second plant closed after 38 years of operations.

Spain currently stores nuclear waste at the reactor sites for ten years with no reprocessing. Plans for future storage include a temporary storage facility in Trillo, until the establishment of a longer-term storage facility.

Nuclear power in Spain is phased out. Recently, a spill of radioactive waste at the Asco I nuclear power plant in November 2007 and other accidents sparked protests. The country’s government has also pledged to shut down its eight nuclear reactors once wind and solar energy become viable alternatives.

On particular windy days, wind power generation has surpassed all other electricity sources in Spain, including nuclear.

Sweden began research into nuclear energy in 1947 with the establishment of the atomic energy research organization. In 1964, the country built its first small heavy water reactor. The country decided to use hydropower and supplement it with nuclear energy to avoid the volatility in oil prices. Six reactors began commercial service in both the 1970s and 1980s, with one unit closed in 1999 and another in 2005. Currently, Sweden has ten nuclear reactors, providing 9,016 net MWe or 50% of the country’s electricity. Traditionally, the country balances its exports (Finland) and imports (Norway) of electricity.

Due to political pressure, the two units at Barseback were shut down prematurely. Sweden is looking to increase the capacity of its reactors at Ringhals, increasing net MWe by 400. Moreover, in 2005, an up rate of 250 MWe to a reactor in Oskarshamn was approved. The total cost for these projects amounts to approximately EUR 400 million.

Sweden is one country that appears to have nuclear waste management well under control. Low-level waste is currently stored at the reactor sites or destroyed at Studsvik. The country has dedicated a ship to move waste from power plants to repositories. Sweden has also constructed a permanent underground repository with a capacity of 63,000 cubic meters for intermediate and low-level waste. The government has also identified two potential candidates for burial of additional waste (high-level), Oskarshamn and Osthammar.

Nuclear power seems popular in Sweden once again. However, in the past the popularity of nuclear power seemed questionable. In 1980 a referendum, three options were highlighted for closing the country’s nuclear plants but none for continuing it. Moreover, Sweden is the only country to tax nuclear energy – currently at EUR 0.67/kWh. The current political party in Sweden supports nuclear power. They have abandoned all plans on reactor shutdowns, increased reactor upgrades, and allowed for new reactor construction after 2010. In 2004, only 7% of the population considered the use of nuclear energy as an environmental problem compared to CO2 emissions and hydropower’s effect on rivers. In another poll, only 17% of the population supported a phase out of all nuclear power.

The first full-scale nuclear reactor in Europe opened in Calder Hall, located in Cumberland, United Kingdom on October 17, 1956. Calder Hall became the UK’s first commercial nuclear power reactor. At its peak, Calder Hall produced 196 MW of energy. Over the next ten years, nine more nuclear reactors were built across the United Kingdom. The UK has decommissioned 21 reactors since 1980. Recently, the UK privatized its nuclear energy industry but government oversight remains. Currently, the United Kingdom has 19 reactors generating 20% of the country’s electricity. All but one of them will be decommissioned by 2023 with new generation plants expected to be in operation by 2017. Currently, the reactors have a net capacity of 11,035 MWe.

The UK plans to replace almost all of its current reactors with next generation nuclear power reactors. The current reactor lives could be extended if electricity demand merits their use. The primary purpose of nuclear energy in the UK is to lessen the green house gas emissions and maintaining energy security.

The UK waste management has been advised to forgo reprocessing spent fuel and instead to bury the waste into repositories. The government should also find a suitable location for burying the waste and provide incentives for nearby communities. The UK has also taken responsibility for its nuclear waste from civil and military activities. Finally, proper disposal of the decommissioned nuclear power plants is underway.

Public opinion as of late has moved to support nuclear energy. A poll in 2007 had 65% of the population supporting a new build of nuclear technologies. Most of parliament agrees that nuclear power is imperative for the UK to maintain its energy security and meet CO2 emissions standards.

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Endesa (Spain)

Endesa, S.A. (Empresa Nacional de Electricidad, S.A., NYSE: ELE, BMAD: ELE) is the largest electric utility company in Spain and a subsidiary of the Italian utility company Enel. It has 10 million customers in Spain, with domestic annual generation of over 97,600 GWh from nuclear, fossil-fueled, hydroelectric, and renewable resource power plants. Internationally, it serves another 10 million customers and provides over 80,100 GWh annually. Total customers numbered 22.2 million as of December 31, 2004. It also markets energy in Europe. The company has additional interests in Spanish natural gas and telecommunications companies.

The company was formed in 1944 as Empresa Nacional de Electricidad, S.A. and changed its name to Endesa, S.A. in 1997. In September 2004, it took control of the French company SNET (Société nationale d'électricité et de thermique). This was followed by the downsizing of 30% of SNET's employees.

In 2006 and 2007 Endesa was the target of takeover bids by Gas Natural, Germany's E.ON and the Italian firm Enel. Despite Barcelona-based Gas Natural being half the size of Endesa, its bid was championed by the socialist government as an all-Spanish deal. The opposition People's Party and some Madrid politicians had criticised the bid, alleging political interference by the socialists and a Catalan plot to control energy supply respectively. Gas Natural backed away from its bid after Germany's E.ON offered a higher bid for the company .

On 2 February 2007 E.ON offered €38.75 for each share of Endesa. The German firm withdrew its bid two months later in exchange for a promise from rival bidders to sell it part of the Spanish utility's assets. SNET, Endesa Italia and Enel's Viesgo were amongst the business units ultimately sold off to E.ON. Acciona and Enel succeeded in their joint bid to acquire Endesa in October 2007 for an estimated €42.5 billion and they announced later that month that they jointly held 92.06% of Endesa's share capital (25.01% Acciona and 67.05% Enel) as a result of their 100% takeover bid launched on Endesa, with the remaining 7.94% being free float.

The two companies initially jointly managed Endesa through an Acciona-controlled holding company which held 50.01% of Endesa's share capital, but in February 2009 Enel agreed to buy out Acciona's stake, taking its total ownership to over 92%. Some Endesa assets will be sold off to Acciona as part of the deal.

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Électricité de France

Électricité de France.svg

Électricité de France (EDF) is the main electricity generation and distribution company in France. It was founded on April 8, 1946, as a result of the nationalisation of a number of electricity producers, transporters and distributors by the minister of industrial production Marcel Paul. Until November 19, 2004, it was a government corporation, but it is now a limited-liability corporation under private law (société anonyme). The French government partially floated shares of the company on the Paris Stock Exchange in November 2005, although it retains almost 85% ownership as of the end of 2007.

EDF held a monopoly in the distribution, but not the production, of electricity in France until 1999, when the first European Commission directive to harmonize regulation of electricity markets was implemented.

Its 58 active nuclear reactors (in 2004) are spread out over 20 sites (nuclear power plants). They comprise 34 reactors of 900 MWe, 20 reactors of 1.3 GWe, and 4 reactors of 1450 MWe, all PWRs.

On 24 September 2008 EDF announced that its wholly owned subsidiary, Lake Acquisitions, had made a recommended offer for the shares of British Energy Group PLC, which generates about 20 percent of British electricity, mainly from 8 nuclear stations.

EDF was an EPIC (public establishment with industrial and commercial character), and as such, it was subject to the "principle of speciality", that is it had the right to sell electricity; the purpose of this principle of speciality was to prevent EDF competing in an unfair way on their own markets.

EDF's modification of status, announced in March, 2004 by the French government, became effective, after the vote of the "Loi relative au service public de l'électricité et du gaz et aux entreprises électriques et gazières" (law relating to the public service of electricity and gas and in the electrical and gas firms) on August 9, 2004 by publication in the Journal officiel of November 19, 2004.

The status of EPIC created a competitive advantage which became unbearable for the electricity producers in other European countries, especially since the multitude of acquisitions which EDF had accomplished in the UK, Italy and Germany. Thus, they requested that the same 'rules of the game' apply for all.

For their part, EDF needed a juridical structure allowing it to reinforce its equity capitals and to receive investors. Its requirements in equity capitals were estimated in May 2004, between 10 and 15 billion euro.

The specific regime of social welfare system and that of supplementary illness, cover 300,000 electricians and gas workers. A ratified agreement, in November 2004, by only two labour unions, reached a deadlock and the three others opposed BOB.

For a long time, EDF suffered from very low profits for a group benefiting from such monopoly, especially since in the weakness of its results on the domestic market, were added the poor performances of its foreign subsidiaries. Nevertheless, its balance sheet is very fragile, because of its international development, of its tariff policy in France and rapid deterioration of its profitability.

From 2001 till 2003, EDF was forced to reduce its equity capital due to untoward deviations of conversion in South America and write-down of its assets in Germany, Italy and in Brazil for a total of €6.4 billion total. However, according to the report of the Roulet Commission, international development, although costly, must be followed, because if EDF spent €15 billion euro on acquisitions, its rivals would spend €70 billion. The commission recommends a European strategy, an international presence, albeit focussed, and a larger drive to supply gas.

And, as of November, 2004, complete commitment will overtop the €35 billion euro, which seems to mean that it is not able to cope with its pension commitments or the dismantling of its nuclear power stations.

2002 was considered a bad year, with a small €481 million net profit. 2003 saw a small increase with a €857 million net profit. In the first quarter of 2004, the net profit rose to about €1.5 billion (up 50% in comparison with the 1st quarter of 2003).

The tariff policy ordered by the company contract of 1997-2000 had imposed a reduction of 14% of tariffs. Today, EDF's tariffs in France are among lowest in the world, which leaves room for maneuver to increase tariffs.

The choice of nuclear technology, as always, was considered peculiar for EDF. Its engineers made France the first country use electricity of nuclear origin as the dominant method of production (78% of French production by 2007).

Nuclear technology produces clean electricity, but with some risks, even if they are controlled better and better. In May, 2004, the then-French Interior Minister (now President) Nicolas Sarkozy reasserted, in front of the French Parliament, the primacy of a nuclear power, much to the relief of labour unions of EDF. On this opportunity, the minister had imitated the famous slogan "We do not have oil, but we have ideas" by declaring: "We do not have oil, we do not have gas, we do not have coal, but we had ideas".

They also wonder about the assertion of the principle of the tariff adjustment (a unique tariff on the whole territory and equality of users), because as soon as the sale of electricity becomes readily available, it is subjected to the rule of competition and taken into account the true expenses on every segment of customers. The countryside, sparsely populated, risk being the biggest losers.

They also wonder about the true purpose of the government in this affair, and about the strategical will of partners deprived in the capital of EDF, whilst heavy threats (question of retirement, dismantling of nuclear power stations) tax the true balance sheets of the firm.

According to François Roussely the former president of EDF, it is not possible to reconcile low prices and competition in electricity. At any rate where countries privatized electricity, it was rapidly followed by an increase in prices and a certain insecurity about energy, notably owing to speculation on electricity (e.g. Enron).

Before 1956, the electricity companies of France did not use a standardised voltage. Between 1956 and 1991, the voltage was standardized, and today the voltage is 230 V on all French territory.

Migration from 220 volts cost the equivalent of €70 per subscriber in the beginning, and €1,000 per subscriber in 1991. Eventually, the old usage of 220 volts in France standardized itself to 230 volts, in accordance with European standard.

The French government kicked in $550M and sponsors partnership by Electricite de France with Renault-Nissan and with PSA Peugeot Citroen .

Among the other rivals of EDF, one can count a number of municipally governed companies, known under the generic term 'entreprises locales de distribution' ('local businesses of distribution'), who are electricity producers exploiting EDF's network.

The nationalisation of electricity and gas on April 8, 1946, which profoundly changed the French electrical and gas organization, had however acknowledged the right of villages to keep their role in the public distribution of electricity and gas.

In 1946, certain firms, villages or groups of villages, did not accept the proposal of nationalisation and created autonomous state controls (who held the monopoly of distribution, until 2004, in their area). To note, contrary to the initial idea, local controllers of electricity, have had, since 1946, the choice to continue to produce electricity. In fact, their production was rather marginal, except in Rhône-Alpes; having often preferred buying the majority of the electrical power from EDF. With the recent opening of the electricity market, local controllers are considering developing, augmenting and diversifying their own production, (e.g. Ouest Énergie, the subsidiary company of SIEDS) and/or to diversify their sources of supply.

To date, the number of local businesses of distribution is approximately 170 and holds 5% of the distribution of French electrical power in 2,500 villages. Created by local authorities, they serve about 3 million people and represent 7,000 jobs. Around thirty of them - 9 during creation in 1962 - are federated in a national entity known as ANROC .

EDF is present in Europe, South America, Africa and Asia.

In Italy, EDF holds 15% of Italenergiabis (the holding company of control of Edison), but has only 2% of decision rights by proclamation of the Italian government.

Negotiations had taken place in 2004 for the entrance of ENEL on the French market, with freedom to acquire quantities of electricity from EDF, and on the other hand the implementation of buying Edison. Negotiations at this point did not succeed, which forced EDF to buy back, at the beginning of 2005, 3% of its actual partners (Fiat, Carlo Tassara, and from banks) for €606 million, but without recovering voting rights.

But negotiations carry on and in February and April 2005, EDF bought back the stake of other majority shareholders, in total, and considering the takeover bid which it will also have to throw on the minority shareholders, EDF will have to disburse more than €14 billion. EDF will then be in a grotesque situation, because althought it will hold 100% of capital, its voting rights will still be blocked at 2%, as long as France does not open its energy market to foreign competition.

The former president of EDF, François Roussely, had bargained for ENEL a right of 4 MWe so that the Italian firm can gain knowledge of the French market, before buying a stake in the transport system of electricity. But the new president, Pierre Gadonneix, cut short any negotiations. Also, ENEL which was interested in buying 35% of SNET, put up for sale by Collieries of France, was doubled by Gaz de France.

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Source : Wikipedia