By France’s aim to build six nuclear reactors is still off limits as the nation faces challenges to reignite its ageing fleet of nuclear power plants, according to a Reuters report.
France’s President Emmanuel Macron had unveiled a plan in 2022 for state-owned utility EDF to build six new European pressurised reactors.
Cost of France’s nuclear goal
Higher raw materials and engineering costs had increased the cost of building these reactors.
Initially, the cost was estimated at $52.73 billion and was revised up to $67.4 billion in 2023, according to the report.
EDF was reportedly scheduled to revise the cost at the end of last year but has not released any figures publicly.
Challenges to France’s new nuclear reactors
According to the Court of Auditors in France, construction of the new reactors is set to start in 2027, but the financing for the project remains uncertain.
It said that the supply chain has not been programmed to deal with such a massive construction project, which makes it prone to failure.
The country meets about 70% of its domestic power requirements through power plants, which is an integral part of the energy sector in France.
However, the report said that many of France’s nuclear reactors are ageing and have to be retired fairly sooner than anticipated.
France also aims to revive exports of its expertise in the nuclear sector amid renewed interest in the sector worldwide.
The country also hopes to demonstrate the efficiency of its new European pressurised reactors model, which is known as EPR2.
The auditors’ report said that while the cost of construction of the new project has increased, it remains below other recently completed projects in the country.
EDF hopes that the cost of construction would be lower based on efficiencies accrued from building a series of plants.
The industry in France has started to prepare for the construction of the EPR2 models.
However, the auditor said it faces challenges, while financing remained uncertain.
According to a previous Reuters report, officials in France were working on a plan to provide interest-free loans to EDF for the completion of the project.
However, the plan has not been finalised yet.
France’s audit body was quoted in a Reuters report:
Delays and uncertainties…reduce the visibility that the players in the sector need to engage in industrial projects of this magnitude and obtain financing.
The auditor also said that the accumulation of risks and constraints could lead to delays and failures in the completion of EPR2 programme.
Investment decision in 2026
According to the report, EDF plans to make a final investment plan for the nuclear projects in early 2026.
However, the auditor said that the recently launched Flamanville EPR project would yield mediocre profits. Additionally, it estimates the cost of the project at 23.7 billion euros, which includes financing.
Further, the competitiveness of the EPR2 programme would be dependent partially on the financing scheme.
The scheme is said to be reached as part of the agreement between France and the European Commission.
According to EDF, it was necessary to finalise an initial contract with the state to set the framework for investments before receiving approval from the European Commission.
Reuters said that EDF had been facing challenges in terms of rising costs at the UK’s Hinkley Point nuclear plant.
The state-owned company is now helming the plant by itself after the withdrawal of Chinese partner CGN in 2023.
EDF said it should get new investors for the EPR2 project, before financing for Britain’s Sizewall C plant.
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