EDF sounds out interest in its UK coal and gas plants

EDF has enlisted Barclays Bank in a bid to sell of its UK fossil power plants.

Both companies have declined to comment on the story from Reuters that the French utility is gauging interest from other firms in its gas and coal-fired power plants, using the bank as an intermediary.

Heavily indebted EDF wants to sell off non-core assets in order to invest tens of billions of euros in its nuclear power business over the next decade, including in the UK the nuclear reactor project at Hinkley Point.
West Burton gas-fired power plant
The French company owns two coal power plants in Britain: Cottam and West Burton A, along with the West Burton B gas plant.

EDF also runs Britain’s nuclear power fleet but this was not part of the portfolio of assets being considered for sale.

Although the UK government is setting 2025 as a phase out date for coal, British coal plants could still be attractive in the short-term due to the country’s capacity auction which offers power generators payment to make sure they are available during times of peak demand over winter.

EDF’s two coal plants have secured contracts under the scheme from October 2018-September 2021, EDF Energy’s website said.

The West Burton B gas plant has also secured contracts under the scheme.

Last week news reports from France indicated EDF was on the verge of selling Europe’s biggest transmission grid, RTE.

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