The European Commission has launched an in-depth investigation into French state support for building six new nuclear reactors, citing competition concerns.
BRUSSELS: The European Commission has opened an in-depth investigation into French plans to grant state aid for the construction of six new nuclear reactors by energy giant EDF. Brussels announced the probe to assess whether the multibillion-euro support package complies with EU competition rules.
The investigation will examine concerns that the state aid could unfairly reinforce EDF’s market power. It will also assess if the French government is shouldering an excessive share of the project’s investment risk.
“The European Commission has opened an in-depth investigation to assess whether public support that France plans to grant for the construction and operation of six new nuclear reactors is in line with EU state aid rules,” Brussels stated. The commission, acting as the EU’s antitrust regulator, said the probe would check if the aid was “necessary and proportionate”.
France plans to build the reactors in pairs at three existing nuclear plants, with a total capacity of 9,990 Megawatts. Construction costs are estimated at about 73 billion euros, with Paris covering roughly 60% via a subsidised loan at a preferential rate.
The French scheme also includes a 40-year contract to provide EDF with “stable revenue” and a risk-sharing mechanism to shield the firm from unforeseen events like natural disasters. The reactors are planned for commissioning between 2038 and 2044.
The opening of an investigation was described as a “common step” that does not prejudge its outcome. France said it would support the review, which it called “standard”, and expected it to move “swiftly”.
“France’s new nuclear energy sector will, in the coming years, be a major contributor to EU-generated electricity,” the French government said in a statement. The probe follows Commission chief Ursula von der Leyen’s recent pivot, describing Europe’s past turn away from atomic energy as a “strategic mistake”.
The Sun Malaysia
