EDF and partner Exelon have agreed to exit from their joint venture CENG in the near future. France-based EDF is the biggest single producer of nuclear around the world. There are currently five nuclear plants operated by CENG in the US that boasts a total capacity of 3.9 gigawatts. EDF also revealed that it had agreed to a put option with their partner. This enables them to sell their stake in CENG to Exelon at a fair value from January 2016 to June 2022. The nuclear producer said that they are also slated to receive USD 400 million from CENG in the form of exceptional dividends.
Shale gas forced several nuclear reactors to cease operations in the US. The former is cheaper while the latter has become less economical to operate. As a result, utilities are now uncertain about putting more money to nuclear power plants to keep them running. EDF entered the US nuclear market six years ago.
Join the Conversation