EDF: the state opens the complex construction site of the company structure – 28/11/2018 13:59:46

The State having clarified what it expects from EDF, it opened the complex site of a possible "evolution" of the company to enable it in particular to ensure its missions in the nuclear.

Emmanuel Macron presented on Tuesday the main orientations of the multiannual energy program (EPP), a roadmap for the next ten years.

After months of suspense, he said how much EDF should close nuclear reactors of the 58 it operates to reduce the share of this energy to 50% by 2035.

"Concretely, 14 reactors of 900 megawatts will be stopped by 2035. This movement will begin in the summer of 2020 with the final shutdown of the two reactors of Fessenheim," said Emmanuel Macron. Then, it will be "four to six reactors by 2030, the rest between 2030 and 2035".

This is not exactly what EDF was hoping for, as it pleaded for closures (excluding Fessenheim) from 2029 only, once some reactors reach 50 years of age. However, the head of state has chosen a middle path that does not overly the business.

The door is also left open for the construction of new reactors of new generation EPR: the state expects a "precise plan" for mid-2021, with particular details on the costs, to then make its decision.

"We have a roadmap that is quite clear: we will reduce a little bit the share of nuclear, in the orders of magnitude that provided anyway EDF, and we will put in order of battle to build a new EPR" , Judge Nicolas Goldberg, Colombus Consulting.

"Now we have the strategy of the company, so we can reorganize," he told AFP.

– "evolutions" –

The State, which is a shareholder in nearly 84% of the company, has indeed asked its management to propose "the changes in the group that can meet the challenges facing the company in the nuclear, energy renewables, energy services and networks ".

"Proposals for change must imperatively preserve the integrity of the group and allow to dedicate the appropriate means and funding for each activity," says the Elysee.

The state plans to strengthen its stake in EDF "in connection with the specific issues and risks of nuclear activity," the source said. The state will decide "running 2019" a possible rise to capital, according to Prime Minister Edouard Philippe.

A split – or a "dismantling" as feared the CGT – is thus removed. "We want EDF to remain an integrated group, it is not a division of EDF", insisted the Minister of Ecological Transition, François de Rugy.

According to him, the reorganization could result in a "parent company" with subsidiaries: "the debate is to know which badets we put in this or that structure to be effective in the long term".

The question revolves around nuclear energy: how to guarantee EDF revenues for the exploitation of its existing fleet, but perhaps also in case of construction of new EPR, which will probably need a public support mechanism on the English model .

– "full of schemas" –

On the first point, Emmanuel Macron promised a "new regulation of the existing nuclear fleet". The current mechanism, much criticized by EDF, which judges the tariff not high enough and too favorable to its competitors, ends in 2025.

"This suggests that major reforms of French nuclear regulation are envisaged for at least part of the existing nuclear fleet, in order to reduce the exposure of EDF's nuclear badets to the volatility of wholesale energy prices". the market, say Jefferies badysts.

As for the changes of structures, "full of schemas are possible", indicates Nicolas Goldberg.

The State is looking for "what is the structure that will allow EDF to keep its current nuclear fleet, build a new one that will be subsidized without competition, and at the same time keep more competitive activities such as renewable or renewable energy. marketing, "he summarizes.

For example, nuclear power could very well be placed in a subsidiary whose activity would be regulated. This is already the case of the distribution network Enedis, 100% owned by EDF.

"At this stage, the intentions of France remain rather vague in our opinion and EDF will be potentially penalized by this lack of clarity and visibility regarding its future structure," regret for the moment badysts Bryan Garnier.