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.

  • Quittenbrot@feddit.orgEnglish
    2·
    23 hours ago

    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.