Macron wants to review EDF model, preserves its nuclear fleet

Emmanuel Macron announced Tuesday that France did not plan to close other nuclear reactors than those of Fessenheim before 2025 or even 2027, and asked EDF to revise its model to guarantee the financing of its activities, which could lead to rise of the state to the capital of the group.

The head of state has officially postponed for ten years the reduction of about 75% to 50% of the share of the atom in the production of electricity in the country, now scheduled for 2035.

To achieve this goal, 14 of the 58 reactors of the current park will be stopped by this date including the two units of Fessenheim (Haut-Rhin) in the summer of 2020, said the President of the Republic during the presentation of the multiannual energy programming (EPP) for the next ten years.

Two reactors will be shut down in 2027-2028 but two could also be shut down in 2025-2026 if France's European neighbors accelerate their energy transition, for a total of four to six units closed before 2030.

"I do not want us to be in a situation where, because we would go faster on nuclear power, we will have to close coal plants more slowly (…) or have to increase massively for the next few years. cost of electricity, "said Emmanuel Macron in a speech.

"Let's stop saying that we need to strengthen the rapid shutdown of nuclear reactors so that renewable energies find their place (…) Nuclear power now allows us to benefit from low-carbon, low-cost energy." added the head of state.

The shutdowns of reactors should concern the oldest plants – Tricastin (Drôme), Bugey (Ain), Gravelines (North), Dampierre (Loiret), Blayais (Gironde), Cruas (Ardèche), Chinon (Indre-et-Loire) Saint -Laurent (Loir-et-Cher) – which EDF will have to specify the list by the end of the consultations on the EPP, according to elements of the elements transmitted to Reuters by the presidency.

"NO COMPLETE CLOSURE OF THE SITES"

"I immediately set a rule for EDF: no complete closure of the sites.Reducing the share of nuclear energy does not mean giving up nuclear power," said Emmanuel Macron, also stressing the need to limit the social and economic consequences. of these decisions for the territories.

Also according to the elements transmitted to Reuters by the Elysée, the president also asks the group to propose changes in its structure that can "face the challenges facing the company in the nuclear, renewable energy, services energy and networks ".

These proposals "must imperatively preserve the integrity of the group and allow to dedicate the means and adequate funding for each activity".

While EDF, whose French state owns 83.7% of the capital, will have to submit its proposals as part of a strategic plan drawn up following the EPP, the State "will open its own a reflection on the strengthening of its stake in the company's capital in relation to the specific issues and risks of the nuclear activity ".

According to a source familiar with the issue, one option would be to regulate nuclear prices and nationalize EDF's fleet of power plants to protect it from market and competition jolts, by creating in parallel an entity combining renewable generation assets, energy networks and services.

A nationalization of the nuclear fleet would imply, however, that the European competition authorities give their approval to a new regulation of EDF's selling prices, now capped by the mechanism of the Arenh (Regulated Access to Nuclear Power), whose Public Electrician regularly highlights the negative impact on his results.

"We will start work on a new regulation of the existing nuclear fleet, because the current system that allows the French to have electricity prices among the lowest in Europe stops in 2025," said Emmanuel Macron on this subject.

DECISION ON POSSIBLE NEW EPR PLANNED FOR 2021

The challenge for the French state will be to convince Brussels that nuclear power is essential and that the restructuring of EDF does not amount to subsidizing its other activities.

Decisions announced on Tuesday about the nuclear fleet are rather favorable to the group, although he also wanted to wait until 2029 to start closing other reactors than Fessenheim, which suggests compensation for unit shutdowns anticipated.

EDF defends the extension of the lifespan of French reactors from 40 to 50 years (even 60 years) – an operation it has already recorded in 2016 in terms of accounting for part of its fleet – and that the construction of new EPR type reactors in addition to that of Flamanville (Channel).

"We are not making any decisions today on the construction of new reactors because we do not have immediate needs and because we do not have the necessary perspective," said Emmanuel Macron.

The president, however, asked the group to "work on the development of a new nuclear program by making firm price commitments to be competitive, and everything must be ready in 2021 for the choice to be made to the French. can be a transparent and enlightened choice. "