Major financial institutions join effort for ‘dialogue’ with industry
France’s state-owned utility EDF has launched a new advisory board aimed at improving financing frameworks for nuclear power projects worldwide.
A statement said the FINABe* board will bring together major financial institutions and energy sector experts to help develop financing structures and investment models for new nuclear projects, including large reactors and small modular reactors.
According to EDF, members include banks and financial institutions such as ABN AMRO, BNP Paribas, HSBC, Royal Bank of Canada, Crédit Agricole CIB and La Caisse.
The advisory group is expected promote dialogue between the nuclear industry and financial institutions, identify investor expectations and share best practices for structuring bankable nuclear projects.
EDF said growing global demand for low-carbon electricity could lead to a significant expansion of nuclear capacity in coming decades, citing projections by the International Energy Agency that installed nuclear capacity could increase from about 400 GW today to between 600 GW and 1,000 GW over the next 20 to 30 years.
The company said developing credible financing frameworks will be essential as countries consider launching new nuclear programmes or expanding existing fleets.
“For many countries considering new nuclear programmes, securing credible financing solutions is now as critical as selecting the right technology,” said Claude Laruelle, chief financial officer at EDF.
Recent years have seen a shift in the approach of financial institutions toward nuclear energy as governments seek greater private capital participation in the nuclear sector.
Multilateral development banks have also begun revising long-standing restrictions on nuclear financing. The World Bank and other development lenders have indicated increasing openness to nuclear projects under certain conditions.
Governments in Europe and North America have introduced policy tools such as contracts for difference, loan guarantees, and state-backed financing frameworks aimed at reducing investment risk and attracting private capital into new nuclear projects.
* Financing and Investing in Nuclear – Advisory Board EDF
