France Prioritizes Nuclear over Renewables in New Energy Law

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

France is passing a new law that will expand the country's use of nuclear power while reducing its renewable energy targets for wind and solar.

France is set to introduce a new energy law that will cut its solar and wind power targets while significantly expanding its nuclear power base. 

After three years of contentious debate the new 10-year energy decree, known as the Multiannual Energy Plan (PPE), has mandated that state-owned EDF increase nuclear output by 5% to 420 terawatt-hours (TWh) of power annually from its existing fleet by 2035. It also scraps a previous legal mandate for the company to shut 14 of its 57 reactors. At the same time, previous wind and solar targets have been reduced, although both are expected to still grow steadily. "We need to stop ​our internal family squabbling," French Finance Minister Roland Lescure told the media. "We need both nuclear and renewables." 

Nuclear 

Nuclear power is the clear winner in the new energy plan, which Lescure referred to as "the backbone of our electricity system." The generation targets from the 57-reactor fleet have been boosted to a range of 380-420 TWh per year between 2030 and 2035, compared to the previous target of 360-400 TWh. There will no longer be a requirement for EDF to shut 14 older reactors, and lifetime extensions beyond 40 years will remain a central government objective, as guided by the nuclear safety authority. In addition, the government will continue to support the rollout of six new reactors based on EPR2 technology at a cost of roughly 73 billion euro (US$86.4 billion), subject to European Commission (EC) approval for the funding plan. With the first plant not due to be commissioned until 2038, they will not impact the 2035 targets. Industrial Info is tracking 155 nuclear power-related projects in France worth US$107 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. 

Solar 

Solar targets have been revised down from 100 GW in the 2024 version of the law to 55-80 GW in the final draft. The first goal will be to boost installed capacity from 31 GW at the end of last year to 48 GW by 2030 - an increase of 17 GW. Around 10 GW of this capacity is ready to be constructed with just 7 GW needing to be added over the next five years to reach that target. 

Wind

The PPE 3 lowers previous goals for onshore wind deployment from 45 GW to 35-40 GW by 2035. There will also be an emphasis on repowering existing windfarms versus new grassroot developments, which are deemed cheaper and less likely to face stiff local opposition. Offshore wind targets have been reduced to 15 GW by 20235, down from 18 GW. Recent French offshore auctions have suffered from a lack of interest with the seventh auction (AO7) for the 1 GW offshore windfarm off Île d'Oléron receiving no bids. An eighth auction (AO8) for Centre Manche 2 tender was won by a consortium of TotalEnergies and RWE, but RWE has now withdrawn. 

Reaction

Nuclear power operator EDF welcomed the news. "EDF Group is fully committed to the PPE3, with its programme to build six EPR2 nuclear reactors and an additional eight as an option, the continuation of the operating lifetime of existing nuclear reactors, the revival of investment in hydropower, and the preservation of expertise in renewables, particularly offshore wind projects," it stated. The Renewable Energy Syndicate (SER), which represents all renewable energy sectors in France, cautiously welcomed PP3, as its delay in recent years has harmed renewable energy investment. "These announcements mark a decisive turning point as they will relaunch the momentum of the energy transition in France," it stated. "Regarding solar power, the target set for 2030, of 48 GW, reflects a market slowdown of the last two years, but avoids bringing the sector to a standstill. Here too, it will be essential to be able to quickly relaunch tenders for all market segments. Regarding onshore wind power, the ambition has been reduced, which the SER regrets. Furthermore, the focus is on renewing existing wind farms, which will not be sufficient to reach the set targets. Concerning offshore wind...the finalization of Tender 9 and the rapid launch of Tender 10 are essential to provide visibility to the industrial and port sectors along the various maritime coastlines."

Key Takeaways

• France prioritizes nuclear power in its new energy plan.
• Reductions made to solar and wind targets.
• Industrial Info is tracking 155 nuclear power-related projects in France worth US$107 billion.

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