satisfaction at EDF, anger of environmental NGOs

The announcements of Emmanuel Macron and François de Rugy on the energy roadmap of France open a new project for EDF: that of its internal reorganization. Tuesday, December 27, the President of the Republic explicitly asked the group to propose changes in its structure while preserving " the integrity of the group ".

"You have to really look at all the possibilities" but "We want EDF to remain an integrated group, it is not a division of EDF"insisted the minister of ecological transition and solidarity.

In concrete terms, with the announcement of the Multiannual Energy Program (EPP), the government has set a course for the future of the company. Admittedly, the scenario chosen is not exactly what the group of Jean-Bernard Lévy wanted, but it is very close to it. EDF demanded that no reactor shutdowns take place before 2029. The government finally proposed two closures in 2027 and 2028, but most of the shutdowns will be between 2029 and 2035, as the group hoped.

Cost reduction plan for future EPRs

While Macron did not make a clear commitment to building new EPRs, he opened the door to this possibility, asking the nuclear industry to come up with a plan by mid-2021.

This date is important. It allows to launch several major projects for EDF. First, the implementation of a cost reduction plan for future EPRs. Above all, it allows the government to review the mechanism that requires EDF to sell fixed-price nuclear power to its competitors. This system called Arenh (Regulated Access to Historic Nuclear Power) is considered very unfavorable to EDF by the management, and the President of the Republic referred to it directly in his speech. The loosening of this mechanism would allow EDF to sell its electricity more expensive, and to bail out its coffers. This claim is central in the strategy of Mr. Lévy, the CEO of the group, to rectify the accounts of the company.

Finally, it opens a period that allows EDF to work on a new organization. Mr de Rugy outlined on Tuesday the possibility of setting up subsidiaries within the parent company. One way to say that nuclear could be isolated in a separate structure, and that other subsidiaries, such as renewables, distribution or services, could see their capital open in part.

Allow EDF to cope with the many investments

The objective is to enable EDF to cope with the many investments that will be needed to extend the life of the nuclear fleet. But the company is still heavily indebted, and will find it difficult to finance alone this program of "great refit" of bringing power plants up to standard.

«EDF's roadmap must be ready by 2021, it gives a clear framework»explains Charlotte de Lorgeril, energy consultant at SIA Partners. Officially, EDF does not want to speak on the subject, but in the details of the EPP, we find the outline of the proposals formulated by the electrician. Internally, however, we note the "Coherence" and the "Pragmatism" measures drawn by the executive.

A vision that is not shared by the CGT EDF, which opposes the schedule of closures of coal and nuclear power plants, and has already decided to call the strike and mobilizations on December 3 to oppose it.

"Stagnation in the nuclear stalemate"

For environmental NGOs, EDF's lobbying has been effective. Alix Mazounie, energy campaigner for Greenpeace France highlights:

" For the umpteenth time, the government is bowing to the nuclear lobby. This incoherent plan resembles, neither more nor less, EDF's plan: to play the watch and preserve the nuclear power at all costs ".

"This is not a transition that the government is proposing, but a stagnation in the nuclear stalemate", denounces the network Out of the nuclear. The Foundation for Nature and Man (FNH, former Nicolas Hulot Foundation), believes that France sinks into the " nuclear era " : "On the closures of nuclear reactors, compared to what Nicolas Hulot had negotiated, the president acts a step back and opens the door to new EPR", estimates its president, Audrey Pulvar.

Several of these organizations question Emmanuel Macron's desire to really develop renewable energies by maintaining such a large share of nuclear power. And denounce the lack of resources allocated to the thermal renovation of housing. "We are still waiting for a Marshall Plan on this subject", we deplore to the FNH.