On Tuesday 31 March, the European Commission launched an in-depth investigation to determine whether the public aid that France plans to grant to Électricité de France (EDF) for the construction and operation of nuclear reactors is limited to what is strictly necessary, in accordance with the European Union’s rules on State aid (Article 107 of the TFEU and Regulation (EU) 2024/1747).
At the end of 2025, the French authorities notified their intention to support the construction and operation of six new nuclear reactors with a total electricity generation capacity of 9,990 megawatts, spread over three sites (Penly, Gravelines, Bugey). Total construction costs are estimated at €72.8 billion for a plant life of 60 years from 2038.
The Commission recognises that the project is necessary and that the proposed aid - a soft loan covering 60% of the construction costs, a 40-year two-way Contract for Difference (CfD) to ensure stable revenues for the plants, protection against risks beyond EDF’s control - will facilitate the development of economic activity and contribute to the EU’s decarbonisation objectives.
Nevertheless, the EU institution considers that it is necessary to verify in particular: - the appropriate and proportionate nature of the public aid measures, with the Commission having doubts as to whether these measures prevent an excessive transfer of risk to the State; - the possible impact of the measure on competition, with the Commission fearing an indirect strengthening of EDF’s market power.
The French authorities, who say they were inspired by the type of public aid granted to the Czech reactor at Dukovany (see EUROPE 13778/19), according to AFP, are hoping for a rapid decision before the end of 2026.
“The Commission fully understands the objective of reaching a final investment decision by the end of 2026” and will carry out the investigation as quickly as possible, said Ricardo Cardoso, spokesman in charge of Competition. But “we will not compromise on the quality, completeness or integrity of our assessment”, he added. (Original version in French by Mathieu Bion)