
E.On have been speaking to the government about long term energy policy and whether this includes nuclear. Not surprisingly with their expertise in managing nuclear plants in Germany, they feel that there is a balance in private and public risk, which they themselves are expertly positioned to help the government manage. RWE also have nuclear plant in Germany and will have had some dialogue with the government as well. The encouraging thing from an industry stand point is that it appears that all parties both private and public believe that they have something to offer in the nuclear debate. Financing is something which is predominantly going to come from the government, mainly because banks are only interested in 20 year loans and nuclear power projects would involve 50 year loans. Furthermore the project risk on an individual power plant project is likely to be too heavy to bear for most banks. The German power players probably see an opportunity to operate and maintain the plant for cheap power produced, furthermore it starts to add pressure to British Energy who have had the governments ear as the only operator and maintainer in the Uk, clearly this position is changing.
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