Finance
France's EDF faces higher costs from electricity oversupply
Published by Global Banking & Finance Review®
Posted on February 16, 2026
2 min readLast updated: February 16, 2026
Quick Summary
EDF faces rising costs from electricity oversupply as renewable energy changes nuclear reactor operations, increasing maintenance needs.
EDF Faces Rising Maintenance Costs Due to Electricity Oversupply
Impact of Electricity Oversupply on EDF
PARIS, Feb 16 (Reuters) - French nuclear operator EDF said on Monday it faces increased maintenance costs of around 1.5 million euros to 3.75 million euros a year as it has to reduce power at its nuclear reactors to respond to increased electricity supply and slow demand.
Rising Maintenance Costs
Around 70% of French electricity comes from nuclear power, which makes up about half of state-owned EDF's revenue, but a recent rise in solar power to the grid has changed how the nuclear reactors operate.
Changes in Energy Production
The increase in renewable energy has led to a fundamental change in how EDF modulates production, causing it to reduce output during the middle of the day when there is a lot of sunlight compared to previously when it would do this during periods of low demand in the evening or at the weekend, EDF said.
Economic Implications of Modulation
Modulation - or the quick reduction of power output to adjust for an influx of renewable energy - doubled in 2024 compared to 2019 as more renewable energy capacity was added to the French grid and demand growth remained sluggish, EDF said.
"The main impact is that increased flexibility will lead to increased maintenance needs and therefore increased costs, simply because some equipment will be used more frequently," Deputy Director of EDF's Nuclear Production Division Jean-Marie Boursier said in a call with journalists.
Modulation remains a purely economic issue and has no impact on the safety of the nuclear fleet, EDF said, adding that the solution is to increase electricity consumption to meet current production volumes.
France released its new multi-annual energy planning law last week, calling for an increase in renewable energy production and the use of public money to stimulate French demand growth, which has remained sluggish.
(Reporting by Forrest Crellin; Editing by Alexander Smith)
Key Takeaways
- •EDF faces increased maintenance costs due to electricity oversupply.
- •Nuclear power constitutes 70% of France's electricity.
- •Renewable energy growth changes EDF's production modulation.
- •Modulation increases maintenance needs and costs.
- •France plans to boost renewable energy and demand growth.
Frequently Asked Questions about France's EDF faces higher costs from electricity oversupply
1What is electricity oversupply?
Electricity oversupply occurs when the production of electricity exceeds the demand, leading to excess energy that must be managed by power producers.
2What is nuclear power?
Nuclear power is energy produced from nuclear reactions, typically through the fission of uranium or plutonium, and is a significant source of electricity in many countries.
3What are maintenance costs?
Maintenance costs refer to the expenses incurred in the upkeep and repair of equipment and facilities to ensure they operate efficiently and safely.
4What is energy modulation?
Energy modulation is the process of adjusting the output of power generation sources to match the fluctuating demand for electricity, especially in response to renewable energy inputs.
5What are renewable energy sources?
Renewable energy sources are natural resources that can be replenished, such as solar, wind, hydro, and geothermal energy, which are used to generate electricity sustainably.
