EDF Energy announced it would hold off decommissioning two of its nuclear power stations for two years after a “rigorous review” into extending the plants’ lifespans to over forty years.
Its Heysham 1, in Lancashire, and Hartlepool, Teeside reactors are now expected to keep supplying the grid until 2026, EDF said in a statement, preventing a rise in gas demand and supporting energy security, despite both having been originally due for decommissioning in 2014.
“Positive inspections of the graphite reactor cores during 2022 have increased confidence that the stations can generate for longer,” it reassured, with both set to mark 40 years of generation this year.
“Supplying zero-carbon and affordable electricity, whatever the weather, has never been more important than right now,” managing director Matt Sykes said.
“As well as helping the UK reduce its use of imported gas, it is also great news for the 2,000 skilled people whose jobs are supported by these sites,” he added.
EDF said keeping the sites running was also “critical” for maintaining the skilled workforce needed to operate nuclear plants as the UK looks to rebuild its nuclear capacity with new projects at Sizewell and Hinckley Point.
The UK currently has six generating nuclear stations, all operated by EDF, though five of these are anticipated by the government to close within the next five years.
Two more stations, at Dungeness and Hunterston, have closed in the past two years and are currently being decommissioned, with the former having been expected to keep generating until 2028.
EDF added that keeping the two stations open for a further two years could provide an additional 29TWh to the grid, displacing “6bn cubic metres of gas” and the equivalent of removing 5mln cars from the UK’s roads.
Centrica PLC (LSE:CNA), which owns a 20% stake in the two plants, rose 1.3% to 107.6p in early trading, before sliding to 105.9p.
Barclay's analysts commented the announcement would help "underpin" Centrica's earnings, estimating earnings per share to grow 2-2.5p per year.
Rating it 'overwight,' Barclay's gave Centrica a price target of 160p.