EDF Hopes For UK-Style Subsidies For New Nuclear Plants In France

10 May (NucNet): French state-owned utility EDF hopes for UK-style subsidies for the construction of new nuclear plants in France and expects that president-elect Emmanuel Macron’s plan to reduce the share of nuclear in the French power mix is a “long-term” plan, reports said on 10 May 2017. EDF chief financial officer Xavier Girre said EDF would discuss power market regulation with Mr Macron’s team. He said EDF was hoping to convince the Macron government to introduce state subsidies for new nuclear plants, modelled on the contracts for difference (CfD) scheme under which EDF is planning to build two EPR nuclear units at Hinkley Point in England. For its £18bn (€21bn, $23bn) Hinkley Point project, EDF has signed a CfD with the British government under which it can sell power at £92.5/MWh for 35 years. If the market price is above that level, EDF refunds the difference, if it is below that level it receives a top-up. Mr Girre also said that Mr Macron’s campaign target to reduce the share of nuclear in the French energy mix to 50% by 2025 from about 75% today was a long-term target and that his plans for CO2 floor price should be positive for the utility. Mr Girre said EDF wanted to talk to the new government about the ARENH (‘Regulated Access to Incumbent Nuclear Electricity’) mechanism under which it is forced to sell up to 25% of its nuclear output to competitors as part of measures to improve competition in the retail power market. “We consider that it is necessary and fair to reform the ARENH mechanism to prevent it from being as biased as it is today,” he said.