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Macron Proposes Government Loans and CFDs to Support French EP2 Fleet

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France plans to subsidize the construction of six EPR2 reactors over the coming decades with a government loan covering at least half of the construction costs, paired with a contract for difference at a maximum strike price of €100 ($108) per megawatt hour, France’s Nuclear Policy Council announced Mar. 17. This should enable finalization of financing discussions “in the coming weeks” and “rapid” initiation of discussions with Brussels, followed by state-owned nuclear giant EDF making a final investment decision on the project in 2026. Project details remain unfixed, and EDF was directed to present a binding cost and schedule by year's end. The council, chaired by President Emmanuel Macron, quietly pushed back the timeline of commissioning for the first EPR2 reactor from 2035 to 2038, and French Industry and Energy Minister Marc Ferracci separately estimated the EPR2 program's total cost at €70 billion, up substantially from an initial 2022 estimate of €52 billion. The council also made EDF "primarily" responsible for funding capital investments at Orano's La Hague reprocessing facility, including a new spent fuel pool.

Topics:
Nuclear, Nuclear Newbuilds, Ukraine Crisis, Military Conflict, Electricity Demand , Nuclear Policy, Utilities
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