- cross-posted to:
- world@lemmy.world
- cross-posted to:
- world@lemmy.world
After years of wrangling, France has set out a new energy law that slashes its wind and solar power targets and drops a mandate for state-run energy provider EDF to shut down nuclear plants.
Yea*, because the French state as the sole owner of EDF told them so. And is providing them with a multitude of subsidies for their activities. Hence, the true costs of nuclear power are hidden with cross-subsidisation.
*Rather, the price can very well exceed 70€, but is then taxed more
From what I can find, with my limited french skills, EDF isn’t getting much in the way of subsidies. The 70 euro soft-ceiling was a massive raise to fund new reactors, it used be ~40 euro’s for 25% of power and they ran fine on that.
They didn’t run fine on that at all. The blanket 45€ cap ensured very cheap electricity in France, but also led to EDF being indebted by approx 65 billion € in 2022.
That’s when the French state decided to fully step in and increased their share in the company from 80ish to 100% for another 10 billion € taxpayers money/national debt. I’d call that a subsidy.
That also means that the debt of EDF is now fully covered by the French state, giving the company more leeway despite being so indebted. That also qualifies as a subsidy.
Further, the planned new EPR2 reactors will include a clause that will guarantee EDF a minimum price. Should prices fall below that, the difference is covered by the French state. That could be a subsidy.
Also, the French state will provide favourable loans and guarantees for the construction of these reactors, giving that EDF themselves don’t have the funds to tackle this huge investment. That’s a clear subsidy.