The board of EDF has approved the terms of the compensation protocol related to the shutdown of the Fessenheim nuclear power plant in eastern France, following the closure agreement reached with the French state in August 2016.
The group has approved the compensation formula set in August 2016, that will be used to estimate anticipated costs and compensation for early closure (EDF expected to operate the two reactors for 60 years, i.e. until 2048). The compensation will be disbursed in phases: a fixed compensation of €490m will be paid by 2021, 20% of which will be paid in 2019 and 80% in 2021, to cover staff reconversion costs, dismantling costs; a variable compensation could cover EDF's shortfall up to 2041. EDF's partners in the plant, namely EnBW and CNP, will be entitled to receive a share of the shortfall compensation, on the basis of their contractual rights over the generation capacity.
The Fessenheim nuclear power plant is the oldest operational power plant in France, with two 880 MW (920 MW gross) PWR units commissioned in 1978. EDF expected to operate the two reactors for 60 years, i.e. until 2048, but its early closure was a 2012 presidential election campaign promise. The shutdown, scheduled for 2016, has been postponed to late 2018-early 2019, when the third generation power nuclear Flamanville EPR project will be commissioned.
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