Published by Global Banking and Finance Review
Posted on March 17, 2025
PARIS (Reuters) - France has agreed to issue state-owned EDF with a subsidized loan covering at least half the construction costs of six nuclear reactors, president Emmanuel Macron's office said on Monday, a major step in its plan to renew an ageing nuclear fleet.
Negotiations between EDF and the state over financing are expected to be finalised in "coming weeks", the statement said, before being sent to the European Commission for approval.
EDF is expected to reach a final investment decision by mid-2026, it said.
The plans for a subsidized state loan, previously reported by Reuters, also include a price ceiling on contracts for difference (CFD) for the new reactors, which would be set at a maximum of 100 euros per megawatt-hours (MWh) in 2024 value.
The CFD cap is well above current market contract for 2026 priced at 61.6 euros per MWh.
A CFD specifies a fixed price for a power contract over a set period to protect the buyer and seller against market volatility.
The financing arrangement is similar to what was agreed recently for a reactor in the Czech Republic.
EDF was not immediately available for comment.
(Reporting by Forrest Crellin, Benjamin Mallet and Michel Rose, editing by Dominique Patton and Tomasz Janowski)
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