President Emmanuel Macron announced on Thursday that France will build at least six new nuclear reactors in the next decades, putting nuclear power at the core of the country's goal of carbon neutrality by 2050.
Macron stated that the new plants will be built and operated by EDF, a state-owned energy company, and that tens of billions of euros in public funding would be used to fund the projects and protect EDF's finances.
“What our country needs, and the conditions are there, is the rebirth of France’s nuclear industry,” Macron said, unveiling his new nuclear strategy in the eastern industrial town of Belfort. Assuring that solar and offshore wind power development will be accelerated. Macron also stated that if it was safe, he intended to prolong the lifespan of ageing nuclear reactors in the world's most nuclear-intensive country to more than 50 years, up from more than 40 years today.
The news comes at a challenging moment for EDF, which is dealing with delays and budget overruns on new nuclear plants in France and the United Kingdom, as well as corrosion issues in some of its older reactors. The nuclear plan reaffirms France's commitment to nuclear power, which was a cornerstone of the country's postwar industrial supremacy but whose future was in doubt after Macron and his predecessor committed to limit nuclear power's role in the energy mix.
Macron's views has been influenced by the European Union's lofty targets for carbon neutrality within three decades, which have refocused attention on energy sources that release fewer, or no, greenhouse emissions than fossil fuels, such as nuclear power.
Soaring energy prices, as well as concerns over Europe's reliance on Russian gas, have persuaded French leaders that the continent requires greater energy independence. Depending on finance conditions, EDF predicts that six additional reactors will cost around 50 billion euros ($57.36 billion).
Macron stated that the first nuclear reactor, an extension of the European Pressurised Reactor (EPR), would be operational by 2035. He stated that studies for an additional eight reactors, in addition to the initial half-dozen new plants, would be launched.
France also plans to create 50 offshore wind farms with a combined capacity of at least 40 GW by 2050, doubling its solar power output to more than 100 gigawatts (GW).
Energy U-turn
Macron reversed his earlier vow to retire more than a dozen of EDF's 56 reactors by 2035 by extending the life of existing units. After Japan's Fukushima accident in 2011, Europe is still divided on nuclear safety.
“Certain countries have made the extreme choice of turning their back on nuclear energy. France has not made that choice,” Macron said.
Green energy campaign group Association negaWatt accused Macron of “deepening France’s addiction” to nuclear.
Under new European Commission guidelines on green financing, France pushed hard for nuclear power to be labelled as sustainable. If the new EU taxonomy regulations are implemented, the cost of funding nuclear energy projects should be reduced.
“Macron said the state would assume its responsibilities in securing EDF’s finances, indicating that the government may inject fresh capital into the 84% state-owned firm. The state will assume its responsibilities in securing EDF’s finances and its short- and medium-term financing capacity,” Macron said.
EDF's EPR reactors have a tumultuous past. EPR projects in France and the United Kingdom are years behind schedule and billions over budget, while EPR reactors in China and Finland are experiencing technical difficulties.
Separately, EDF cut its nuclear fleet output prediction to 295-315 TWh this week, down from 361 TWh last year, in part due to extended reactor shutdowns due to corrosion issues in numerous reactors. It would be the lowest since 1990 if the level fell below 300 TWh.
To add to EDF's woes, Macron, who is up for re-election in two months and is trying to quell public outrage over growing energy costs, has ordered the utility to sell more inexpensive power to rivals, a decision that will slash EDF's core earnings by around 8 billion euros in 2022.
So far in 2022, EDF's stock has lost 18% of its value.
EDF said on Thursday that it will purchase a nuclear turbine unit from General Electric in France as part of a strategy to consolidate nuclear activities deemed strategic.