The U.K. committed to the world’s costliest power station when it agreed with Electricite de France SA to build the first new nuclear reactors in the country since 1995, according to Liberum Capital Ltd.
The U.K. government’s decision to guarantee as much as 10 billion pounds ($15 billion) in debt for the first nuclear power station in two decades helps ensure Electricite de France SA will support construction of the plant.
Centrica Plc is close to buying a stake in shale gas fields in England, a person with knowledge of the matter said, placing the U.K.’s largest energy supplier at the center of efforts to start producing the fuel.
Adopting a minimum price for carbon dioxide will do little to encourage investment in the U.K. power sector and risks souring relations with continental Europe, according to Citigroup Inc. and Virgin Green Fund analysts.
The U.K. government will publish draft strike prices tomorrow outlining how much renewable project developers will earn for each megawatt-hour of power they produce, a Liberum Capital Ltd. analyst said.
Severn Trent Plc, the second-largest publicly traded U.K. water utility, rejected a sweetened takeover proposal from a Canadian infrastructure investor and Kuwait’s sovereign wealth fund that valued the company at 5.2 billion pounds ($7.98 billion), saying the offer was too low.
The U.K.’s 376 billion-pound ($582 billion) program to switch from fossil fuel to renewable and nuclear power is headed for crisis because of looming energy shortages and spiraling costs, Liberum Capital Ltd. said.
Kuwait’s sovereign wealth fund and a Canadian infrastructure investor are discussing a bid for Severn Trent Plc, the U.K.’s second-largest publicly traded water company that’s valued at almost 5 billion pounds ($7.6 billion).