The French authorities and EDF enjoy struck a deal on nuclear electrical energy costs to protect customers from increases and enable the mutter-owned utility to fund original reactor enhance, drawing criticism from energy-intensive companies.

Image: Ministry of Vitality Transition

From pv magazine France

The French authorities and utility EDF enjoy reached an settlement on the price of nuclear energy after “prolonged, customarily demanding negotiations,” in response to Finance Minister Bruno Le Maire. The original moderate stamp for nuclear energy used to be dwelling at €70 ($76.10)/MWh for a length of 15 years starting from 2026.

The original pricing arrangement will change the so-called Regulated Receive entry to to Incumbent Nuclear Electrical energy (ARENH) mechanism, which requires EDF to sell 100 TWh per yr of nuclear production to its competitors at €42/MWh. EDF at the moment owns and operates most of France’s nuclear energy like a flash and sees the current stamp as two low, given current market costs for electrical energy.

The authorities and EDF obvious €70/MWh by modeling costs over 15 years, brooding about grab and redistribution mechanisms, bilateral energy have agreements (PPAs), and medium-time length contracts. Two ranges had been established: if the frequent stamp surpasses €78.80/MWh, 50% of the additional income past this threshold goes to the mutter funds; exceeding €110/MWh finally ends up in a 90% grab, with surpluses returned to customers.

“If this settlement secures EDF – the armed arm of our energy policy – over the prolonged time length, it moreover items the non-negotiable prerequisites for electrical energy produced in France at a stamp competitive,” talked about Agnès Pannier-Runacher, minister of energy transition.

In fashion convey

Yann Dolbeau, co-founding father of consulting company Enoptea, talked about that the mechanism would successfully disconnect the electrical energy stamp from gas costs. As a consequence, there might perchance no longer be any longer capping, and the half of nuclear energy in provide costs will amplify, ensuing in lower costs.

CLEEE, the French association of energy-intensive companies, has outlined the original measure as “a gigantic step backwards” for French companies. “The original map will snarl EDF an anticipated income successfully above the corpulent production price, with a retrocession threshold to customers equal to almost double the production price,” talked about CLEEE.

CRE, the French regulator, estimated the corpulent price of current nuclear energy at €60/MWh between 2026 and 2030. When put next to the sting of €110/MWh, it’s nearly double.

“If we portion the prefer to present EDF the scheme in which to speculate, we remorse an arbitration made for budgetary causes to the detriment of stamp steadiness and the safety of French swap. A invoice must quickly be tabled by the authorities and detractors nonetheless hope so as to manual distinct aspects of the reform,” the association talked about.

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