Italian utility Enel SpA Friday said it reached
an energy agreement with Electricite de France SA that
will ultimately allow it become a strong competitor in the French
market and gain stakes in future nuclear-run power facilities.
Enel said the two companies agreed to the Rome-based utility
taking a 12.5% stake in EDF-run European Pressurized Reactor, or EPR,
program that will build a 1,600-megawatt facility in Flamanville in
France.
Enel said the Flamanville facility is estimated to cost EUR3.6 billion.
In a statement, Enel said it holds the option to own the same
stake in the following five EPR-run plants to be built. The deal could
be worth up to EUR2.7 billion for Enel, according to Dow Jones
Newswires calculations.
The deal between Enel and EDF appears to indicate the
European Union energy liberalization drive is opening up the market.
Some governments of the 27-country bloc, with France at the forefront,
have been reluctant to reduce barriers to competition to strategic
areas such as energy.
"Today is an important date for the development of
cooperation between the two groups, which will contribute to the growth
of a more open and competitive European energy market," said Enel's
Chief Executive Fulvio Conti in the statement. "It creates the basis
for a significant presence in the French market."