Delta

Not completely surprising came the announcement of Dutch utility Delta about postponing plans to build a second nuclear power plant in the Netherlands because of the poor investment climate and low electricity prices. Although Delta states it remains committed to the project, not many believe in its resurrection.

Delta had plans to build a nuclear power plant with a maximum capacity of 2,500 megawatts in the Zeeland province in the southwest of the country, next to an existing plant near the town of Borssele, but said on January 23, 2012 it was delaying these for two to three years. "The last half-year the investment climate has worsened due to the financial crisis. In addition, overcapacity of electricity production has increased further due to the recession," Delta said in a statement.

In December it became clear that French EDF, the preferred partner for the project had decided not to participate and when the newly appointed CEO of German utility RWE in an January 21, interview stated that RWE would not invest in a second reactor in Borssele 'under current economical and political circumstances', it was clear that Delta would postpone or cancel the whole project.

RWE owns 30 percent of the existing Borssele plant, while Delta, which is owned by Dutch municipalities and province of Zeeland, owns the remainder. However there was no agreement on cooperation in the construction of the second reactor. Both Delta and RWE (the Dutch subsidiary company ERH Essent) had started a procedure in the past few years to obtain a license for a nuclear power plant.

Delta says it remains 'committed to nuclear power', and stated the decision had nothing to do with the accident at Fukushima or dwindling support for nuclear in Zeeland province… The decision to put the plan on hold is based solely on economic grounds (low energy prices, no investors) and uncertainty about carbon dioxide (CO2) prices, spokeswoman Mirjam van Zuilen said.

On a stakeholders meeting last December, much criticism and skepticism about the project was visible for the first time. A lot had to do with the passionate but clumsy CEO Boerma, who then left the company. Stakeholders decided not to invest 100 million in obtaining a licence but only 10 million to increase support for the project and come up with interested partners in the coming months.

It is the third time plans for a second reactor at Borssele fail. The first time was in the mid 1970's when a rapid growing anti-nuclear sentiment in the Netherlands resulted in a fundamental choice against new nuclear reactors by the smallest coalition partner at the time. The threat of the collapse of the government was enough to first postpone and later cancel the construction of three reactors.

The second attempt was 10 years later and ended with the explosion at Chernobyl, on April 26, 1986.

While the Germans have returned to their former decision to phase out nuclear power in the 2020s, the Dutch government wants to extend its nuclear capacity. Currently, the Netherlands has one operating nuclear power plant in Borssele (512 MWe), located in the Southwest of the country. A second one, located in Dodewaard (58 MWe), was closed in 1997.

Even before the construction of the Borssele nuclear power plant, which generated its first electricity in 1973, there were plans to build another nuclear power plant in Borssele. Finally, in 1977, the regional government declared itself openly against more nuclear power stations. In the mid 1980s the Dutch government again proposed to build more nuclear power capacity, among which in Borssele. Because of the nuclear disaster in Chernobyl, in April 1986, the public opinion against nuclear power was stronger than ever, and the plans were put on hold.

In the course of the first decade of the new millennium, public opinion turned in favor of nuclear power. More and more people became susceptible to arguments of the nuclear industry that nuclear power reactors do not produce any carbon dioxide and have to be considered as the best alternative for power stations that are fueled by fossil fuels, like hard coal and gas.

The current Borssele nuclear power plant is owned by the electricity utility EPZ, a joint-venture of the utility companies Delta (50%) and Essent (50%). In 2009, Essent was bought by the German energy giant RWE. The statutes of EPZ, however, prescribes that the nuclear power station has to be owned by public bodies. Delta is owned by provinces and municipalities as well as Essent was. The sale of Borssele to RWE, a company quoted on the stock exchange, is therefore inconsistent with the statutes. The court ruled that the Essent part of EPZ could not be included in the sale to RWE. In order to change the statutes Essent needed the cooperation of Delta. This utility however refused to do so and was supported by their stakeholders and the then minister of Economic Affairs.

Meanwhile, in July 2009 Delta had launched the application process to obtain a license for the construction of a second Borssele nuclear power plant with a first memorandum that has to lead to a framework of guidelines for an Environmental Impact Assessment. Though the social-democrats in the then center-left government blocked the building of new nuclear power plants, Delta was looking forward to a right-wing government that should back the plan of a new nuclear power plant. The utility hopes to submit a license request to the current (pro-nuclear) government by the end of 2011. If everything is settled successfully (in Delta's point of view), the request for a construction permit can be submitted in 2012, after which the construction can start in 2013. Cost are estimated on €4 to 5bn and the construction has to be completed in 2018.

The EPZ-part of Essent, which could not be sold to RWE, was transformed by its shareholders (six provinces and municipalities) to the Energy Resources Holding (ERH).

In September 2010, to everybody's surprise, ERH started the formal procedure to obtain a license for the construction of yet another nuclear reactor at Borssele. ERH plans to submit an Environmental Impact Assessment in 2012, and hopes to obtain all necessary licenses in 2014. Construction then can start in 2015 with first power in 2019. Formally RWE is not involved, but practically the shareholders of ERH have regular talks with RWE to determine the strategy in their struggle with Delta.

Early November 2010, Delta entered into an agreement with the French utility EDF to carry out a joint investigation into the feasibility of a new Borssele reactor. The current right-wing minority government, supported by an extreme right-wing party, welcomes the plan for a new nuclear power station. In the months after the announcement another French utility, GDF Suez, and the Swedish Vattenfall offered to take part in the project.

In January 2011, after many months of struggle and unremitting suspense, the Raad van State, the highest court, in the Netherlands, decided RWE could not buy the Essent part of EPZ. In May however,  Delta and RWE reached an agreement on RWE buying a 30% share (instead of 50%) of the Borssele nuclear power plant, leaving the majority of shares in public hands. In fact, this means that ERH will be dissolved later this year when the agreement is finalized: the largest part is sold to RWE and the remainder to Delta.

An interesting question is what will happen with the ERH application for a new nuclear power plant; will RWE continue the application?

A spokeswoman of Delta mentioned to the May 18 edition of the Dutch Het Financieele Dagblad newspaper and the German Westdeutscher Rundfunk (WDR) that RWE will have a 20% share in Delta's new Borssele nuclear power plant. This message was spread by other Dutch and German media. However, in a reaction on Tuesday June 14, spokesman Couwenberg of Delta told WISE Nuclear Monitor that talks with RWE are ongoing: nothing is sure and previous statements were premature.

Meanwhile, Italy has joined Germany and Switzerland in turning its back on nuclear power, after a recent public referendum. It is still unclear what the consequences will be for the rest of nuclear Europe, among which the Netherlands. 

What is certain, is that antinuclear opposition is growing again. In the Borssele region, a newly established coalition of local political parties, ngo's and individuals is working hard and gaining ground. Public opinion in the area is swifting slowly towards a more critical view on nuclear power.

Additionally, another coalition was recently formed on a national level by a large number of environmental organizations and all left wing political parties who joined forces for a demonstration on April 16, 2011. About 10.000 people came to demonstrate in Amsterdam, making it the largest antinuclear protest in the Netherlands since the early 1980's. This coalition (with a consensus: 'no new nuclear power plants') did not dissolve itself after the protest but is institutionalizing itself and will become a force to reckon with.

A new reactor in the Netherlands is not a done deal anymore, although it seemed like that for a long time...

Sources: Financieele Dagblad, 18 May 2011; WDR, 17 May 2011; NRC Handelsblad, 4 November 2010;
Contact: Laka Foundation, Ketelhuisplein 43, 1054 RD Amsterdam, the Netherlands.
Email: info@laka.org
Web: www.laka.org

A court in Arnhem, the Netherlands, has ruled that Germany's RWE cannot acquire Essent's 50% stake in the Borssele nuclear power plant as part of its takeover of the Dutch utility.

Meanwhile, Delta, Borssele's co-owner, has mooted plans to build a second nuclear power station nearby.

In January, RWE and Essent announced an agreement on the terms and conditions for a binding, all cash offer for the German power company to buy all the issued and outstanding shares of Essent for 9.3 billion Euro (US$12.3 billion). Essent's power plant portfolio includes gas, renewables, coal and its 50%-ownership of the Borssele nuclear power plant. RWE's offer for Essent will see the formation of the fourth largest energy supplier in Europe and was to include Essent's half-ownership of the Netherlands' only operating nuclear power plant. However, Delta, owner of the other 50% of the Borssele plant, said in April that it was taking legal steps to prevent RWE taking over Essent's share of the plant. Delta said that the majority of its shareholders had demanded that EPZ - the joint venture between Delta and Essent for the Borssele plant - should remain in public ownership, in line with EPZ's articles of association and the shareholders' agreement. Delta shareholders claimed that Essent must offer its shares in EPZ to Delta, which would ensure that public interests are protected. Delta said that Essent had proposed that the legal ownership of its 50% stake in EPZ should be assigned to the current shareholders of Essent. The economic ownership would then be transferred to RWE. This, Delta claimed, would still give RWE control over the shares by a "back-door route."

In May, Delta announced that it was taking Essent, RWE and Essent's 136 public shareholders to court, claiming that they had acted unlawfully through the way in which the transaction structure of the deal had been specified. On July 10, a court in Arnhem (where Essents headquarter is located) has now ruled in Delta's favour, saying that Essent's shares in EPZ must remain in public hands, as EPZ's statutes stipulate. Essent has not given a reaction yet, saying it has to study the ruling first, but claiming that the deal with RWE is not off the table. The RWE-Essent deal sparkled a fierce public debate on selling public owned utilities, the other large Dutch utility, NUON, at the same time being sold to Vattenfall.

Meanwhile, on June 25 utility Delta announced it had started to apply to build a second nuclear power plant in the Netherlands, which it expects will be operational in 2018. During the presentation of the plans protesters from amongst others WISE and Greenpeace outside Delta’s headquarters in Middelburg (the capital of the Zeeland province) called for all nuclear power immediately to be phased out in the country.

Although public opinion and opinion of political parties is shifting, Dutch government has agreed that no new plants would be built during its mandate, which runs until 2011. It is expected that after the 2011 general elections right-wing pro-nuclear parties will have a majority in parliament, with the extreme right-wing –and extreme pro-nuclear- PVV (Wilders’ Party for Freedom) likely becoming one of the largest parties

Delta expects its request to be handled in the following cabinet period. It has to first submit a draft proposal to the Environment Ministry which will lead to an assessment report. A formal permit request will then follow in 2011, construction will then start in 2013 with first power in 2018, according to Delta.

Boerma said Delta, which is owned by Dutch provinces and local authorities, was looking for strategic partners to join the project for the new plant, which is expected to have a capacity of 2500 MW (in “one or two units”). But, Delta says, no technology has been chosen, although the choice seems to be between the EPR and AP1000. 2500MW is five times the existing 485 MW nuclear reactor, and is about 20% of all installed (electricity) capacity. Delta CEO Boerma added there was enough space around the Borssele site for even more nuclear plants to be an option in the future.

Delta estimates the costs for 2500 MW between 5 billion Euro (US$ 7 billion) Boerma said no decision had been taken on a partner yet, but added that keeping the plant in public hands would be important to ensure safety standards were met.

Sources: Reuters, 25 June 2009 / World Nuclear News, 10 July 2009 / Laka Foundation
Contact: Laka Foundation, Ketelhuisplein 43, 1054 RD Amsterdam, The Netherlands.
Tel: + 31-20-6178 294
Email: info@laka.org
Web: www.laka.org

(September 16 2005) In what has been strongly condemned by major Dutch environmental organisations as a "perverted deal", the Dutch government on September 5 agreed, with the owners of the last Dutch nuclear power plant, to keep the reactor open until 2033.

In early spring of this year the State Secretary for the Environment hired two consultants to initiate talks, behind closed doors, with the main stakeholders to identify possibilities for making a dirty deal; if the environmental movement would accept the postponement of closure to 2033 then the 'saved' money (from not compensating the utility) would then be spent on renewable energy projects and investments.

Since the environmental community refused to participate, the consultants played the divide-and-rule game by trying to expose some groups as supporters of a deal and were rather successful with this ploy. In the current three-party government coalition, the smallest party (D66, progressive liberals) has always expressed opposition to nuclear power but have now bowed to strong pressure from the other two coalition partners. Although the State Secretary in early spring claimed that closure in 2013 (agreed upon when this government took office) would cost approximately 1 billion Euros (US$1.2 billion), the basis on which this agreement has now been reached is that the two owners of the plant will invest 250 million Euro (US$307 million) into seeking extra measures to cut CO2-emissions.
The exact wording of the deal remains a secret but it is widely expected that the two owners (Essent and Delta) will invest this money in increasing efficiency efforts in their coal-burning power stations - an action that they would have been forced to do anyway under the Dutch Kyoto targets and policies.

See also WISE/NIRS Nuclear Monitor 628, May 27, 2005
Contact: WISE Amsterdam

(February 1, 2002) Did the Dutch government, back in 1994/95, reach agreement with the electricity producers and the owner of the last Dutch nuclear power station Borssele? Mr. Wijers, Minister of Economic Affairs from 1994 to 1998, and high-ranking civil servants were recently in court to answer this question (see WISE News Communique 555, "In Brief").

(562.5368) WISE Amsterdam - On January 25 three of a total of 6 persons to be heard gathered in court. The Ministry of Economic Affairs chose all the witnesses as it is up to the government to prove that the agreement was reached. The witnesses still to be heard include the director of the SEP, the Dutch association of electricity producers.

In the week before, WISE Amsterdam successfully obtained most of the written communication between the SEP and government using the Dutch version of the Freedom of Information Act; all papers are published on the WISE Amsterdam web site (but are all in Dutch!)

After months of confusion (mainly caused by the fact that the current Minister of Economic Affairs, Mrs. Jorritsma, is not at all in favor of closing the plant) the papers and the hearings did, according to observers and media reports, prove that the political decision to close the plant at the latest on December 31, 2003, was indeed fixed with a bilateral agreement between the minister and the SEP.

Former Minister Wijers was clearer than he ever was during his period as Minister; he reached agreement, he showed the minutes and he was almost angry that the owner of the plant, formerly part of the SEP, dared to question the agreement. Two high-ranking civil servants who accompanied the Minister in his talks in 1994 with the SEP confirmed the view of the former minister.

Although the case seems clear-cut, the problem is that no court decision is expected before fall. First more witnesses from both the Ministry and the SEP will be heard, then the owner of the plant can call witnesses, then the judge will decide after which both parties have the full right to appeal.

In the meantime the political situation will have changed after elections in May. Most likely the Netherlands will end up with a large conservative majority in Parliament and the two biggest conservative parties (Christian-Democrats and conservative liberals) have already let know that if they are in the government coalition, they will let the plant run till at least 2013.

As Dutch electricity consumers will soon have a free choice of electricity supplier NGO's are preparing for actions against the new owners of the Borssele nuclear power station (Essent and Delta utilities). WISE Amsterdam itself will soon start campaigning against Essent; if they choose to support the production of nuclear-generated electricity we will start consumer actions.

Source and contact: WISE Amsterdam