EDF to spend estimated $7 billion on extending life of nuclear plants

By America Hernandez

PARIS (Reuters) -French utility EDF expects to spend 6 billion euros ($7.05 billion) on extending the life of 20 of its nuclear reactors, it said on Thursday, after getting the go-ahead from the country's nuclear regulator.

The ASN said that state-owned EDF could proceed with upgrading safety standards at its 1300MW reactors so they could operate beyond their original 40-year lifespan.

Raising the safety standards to match those of newer European Pressurised Reactor models would cost an estimated 6 billion euros, said EDF in a statement, adding that preparatory work on the first of the reactors had already begun last year.

French President Emmanuel Macron has made expanding the country's nuclear production capability a flagship project, both by extending the lifetimes of existing sites and building at least six new reactors in coming decades.

The plans come at a difficult time for heavily indebted EDF, which has faced project delays, budget overruns on new plants and defects in some reactors.

They also come as the cash-strapped French government tries to push a budget with 40 billion euros in savings through a divided parliament.

The state already stumped up around 10 billion euros to nationalise EDF in 2023.

However, CEO Bernard Fontana, appointed earlier this year, has been tasked with jumpstarting the nuclear ramp-up and is currently seeking ways to bring in money to finance upgrades and new builds, including possible asset sales.

The regulator said it will issue specific safety requirements for each reactor during its 40-year inspection. Additionally, EDF will be required to provide annual reports detailing its progress in meeting these conditions.

The decision concerns 20 reactors out of the country's 56-strong fleet, which will reach their currently approved lifespan between 2026 and 2040.

The regulator previously approved extensions for EDF's 32 smaller 900MW reactors.

($1 = 0.8516 euros)

(Reporting by America Hernandez and Makini Brice. Writing by Charlotte Van Campenhout. Editing by Jane Merriman and Louise Heavens)