France has consented to grant state-owned multinational electric utility company EDF a preferential loan to finance at least half of the construction expenses for six EPR2 nuclear reactors.
The move is part of President Emmanuel Macron’s initiative to renew the country’s ageing nuclear fleet.
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EDF and the state are expected to finalise financing negotiations in spring 2025 before seeking European Commission approval.
The agreement on financing is a significant step for one of France’s largest public projects in recent years.
Macron announced plans in early 2022 for six new reactors with a total production capacity of 10 gigawatts, as reported by Reuters.
These reactors aim to replace older plants and secure future energy supplies. Construction of the first reactor is scheduled to begin in 2027.
The project was initially estimated to cost €52bn ($56.6), but recent reports suggest costs could rise to as much as €67bn.
EDF has refrained from commenting on the results of the meeting but has indicated that cost estimates will be further detailed and presented to the government by the end of 2025.
A final investment decision is expected by mid-2026, with commissioning anticipated by 2038.
The loan plans include a price ceiling on contracts for difference (CfD) for the new reactors, set at a maximum of €100 per megawatt hour (MWh) in 2024 value.
This cap is above the current market contract for 2026, which is set at €61.6 per MWh. A CfD provides a fixed price for a power contract over a set period to protect against market volatility.
This financing arrangement is similar to a recent agreement for a reactor in the Czech Republic.
France will also need to invest €100bn by 2040 to enhance and expand its electricity grid, according to state grid operator RTE.
This investment is crucial to meet growing demand and accommodate new nuclear reactors.
The French government aims to position the country as Europe’s AI hub, with companies pledging €109bn for infrastructure development, including data centres.
