France’s ambitious plan to build six new nuclear reactors could see over half of the construction costs covered by a state loan, according to a statement from the French presidency following a Nuclear Policy Council meeting.
The council, which oversees France’s nuclear policy, reviewed the financing and regulatory framework for the projects, aiming to accelerate the country’s transition to cleaner energy.
The proposed financing model includes a subsidised government loan covering at least 50% of the construction costs and a contract for difference (CfD) mechanism for nuclear generation, with a maximum price cap of €100 per megawatt-hour (MWh) in 2024 terms. Under a CfD, the state and power producer agree to reimburse each other if electricity prices fluctuate outside a pre-agreed range.
However, the statement only mentions a maximum price, suggesting a potential price cap to stabilise costs.
The French presidency stated that this plan will enable France and its state-owned electricity company, EDF, to finalise negotiations “in the coming weeks” and swiftly engage with the European Commission for approval. EDF is expected to make a final investment decision in 2026, with the six new reactors projected to become operational by 2038.
Broader nuclear strategy
The initiative is part of President Emmanuel Macron’s 2022 strategy to boost nuclear energy production, which could see France build up to 14 new reactors in the coming years. The Nuclear Policy Council has also requested the French nuclear sector to submit a detailed work programme and industrial organisation plan by the end of this year.
In addition to reactor construction, the council approved a development strategy for Orano, France’s state-owned nuclear fuels multinational, to strengthen uranium sovereignty amid current geopolitical uncertainties.
The move aims to secure France’s access to critical nuclear materials and reduce reliance on external suppliers.
France’s nuclear expansion underscores its commitment to maintaining energy independence and reducing carbon emissions. By leveraging state-backed financing and innovative pricing mechanisms, the country aims to modernise its nuclear infrastructure while ensuring affordability and sustainability.
