"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Monday, January 22, 2007

Nuclear power sees a shift in the wind. Areva to take over REpower

The morning of 15th January 2007 on the Leipzig Energy Exchange EEA saw an extraordinary event. The price for a megawatt-hour of electricity fell to Eur 0. Zero.

The fierce storms of the previous few days had produced a surplus of wind-generated electricity - almost as much power was produced as all of the nuclear power plants in Germany combined.

Electricity cannot be stored and so , by law, wind-generated electricity has to be supplied to the mains grid at a fixed price. The price on the Energy Exchange forms the baseline for German national wholesale prices and as a reference for mains and distribution costs, taxes and duties, and forms 20% of the final consumer price in Germany.

The morning of 22nd January 2007 on the Hamburg Stock Exchange saw Areva S.A. the French Nuclear power manufacturing company a 30% share holder in REpower Systems AG (since 2005) make a friendly take over offer of Euro 144 per share (Total Euro600 - US$777Mn) a premium of 44% on the 3 month average Stock Exchange price and 17% up on FRiday's close. The shares ended the day 24% up.

The 2nd largest shareholder is the Portuguese industrial group Martifer Construcoes Metalomecanicas, which has 25.4%.- which in turn is 25% owned by Mota-Engil SGPS SA, Portugal's biggest construction company.

Repower, Germany's third-largest maker of wind-power equipment behind Vestas Wind Systems A/S and Enercon, made a loss last year of Euros 8.3 Mn but a 1Euro 1 million profit in 9 months on sales 50% higher at Euros 292.6 million.

Areva see the business complementing their sales (they have a very full order book for nuclear power) to their clutch of Utility customers in Europe and are eyeing the US market where the Global Wind Energy Council says a record 2,431 megawatts of wind-energy generating capacity was added in 2005, the most of any country worldwide.

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