French power company EDF has announced a delay in its final investment decision (FID) on six new nuclear reactors in the country as lower prices hit the company’s earnings in 2024.
This follows recommendations from auditors regarding financing and design uncertainties, as reported by Reuters.
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EDF CEO Luc Remont confirmed the decision shift during the company’s annual results announcement.
In 2022, French President Emmanuel Macron outlined plans for EDF to construct six new reactors to modernise its ageing nuclear fleet, with construction beginning in 2027.
EDF, which operates Europe’s largest nuclear fleet, had initially planned to make a final investment decision by the end of 2025 or early 2026.
The estimated cost for the project was €67bn ($70.12bn) as of 2023.
But the French court of auditors recently advised EDF not to finalise its investment decision until its designs are complete and financing is secured.
“A decision was now expected around the second half of 2026”, Remont stated.
EDF’s core profit in 2024 fell to €36.5bn ($38.28bn) from €39.9bn the previous year, impacted by lower power prices.
The company noted that with increased renewable energy on the grid and reduced power demand, the number of hours with market prices below €10/MW hour almost tripled compared to 2023.
The company expects a further reduction in earnings before investment, taxation, depreciation and amortisation by €7bn to €9bn in 2025.
EDF’s net debt for 2024 remained stable at €54.3bn.
The company’s net profit increased to €11.4bn, up from €10bn in 2023, attributed to a significant reduction in impairment charges on the UK’s Hinkley Point C project.
EDF is seeking new investors for the project after the withdrawal of Chinese partner CGN.
EDF also recorded a €900m impairment charge on the Atlantic Shores offshore wind farm project in the US, attributed to changes in the American political landscape.
The company’s partner Shell has also written down its stake in the venture.
