EDF, France's EDF, aims to boost electricity demand while low prices hurt profit
EDF, the French state-owned utility, expects its profit to fall again this year due to low electricity prices. This will put pressure on EDF ahead of major investments in its nuclear reactor fleet.
EDF, France's largest power producer, operates in a market that is significantly oversupplied. Benchmark power prices have recently reached their lowest level since the COVID-19 epidemic began in 2020. As more renewable energy is brought online, prices are dropping. However, industrial electricity demand remains low. The company wants to increase demand for energy-intensive projects such as?data centres, by making its former industrial sites accessible to developers who want to access the grid connections that are already in place.
EDF announced on Friday that the core?profit, or earnings before tax, depreciation, and amortisation fell 19% from a year ago to 29.3 billion euro ($34.4 billion). This is despite France's nuclear energy output reaching its highest level in six years.
EDF said that profits will again "slightly decline" this year. About half of EDF's income is derived from the French market.
Priority is to increase usage
The benchmark power contract for the year ahead dropped to about 50 euros per megawatt-hour (MWh) in October. This is below the cost of operation estimated by the French energy regulator CRE, and less than half the 103 euro/MWh EDF claimed was responsible for its 2025 profit.
EDF is trying stimulate demand in order to maintain prices.
"We are working hard to increase electricity consumption in the power mix in order to produce more and sell more. "I think this is the priority of the group today," Claude Laruelle said to journalists after announcing results.
The company reported that net investments in 2025 reached 24 billion euro, with 7.1 billion going to the development of nuclear reactors. This money was mainly allocated to the Hinkley Point?C project in Britain. The company said that the investment levels were higher than what was expected for 2020, and well above EDF's usual capital expenditures.
Capital expenditure has increased by more than 5 billion Euros since 2023. The company will need 70 billion euros over the next decade to build six new reactors. The first of these is expected to start operating in 2038. It will also require more than 100 billion euros for maintenance and repair on its 56 old reactors.
Goldberg added that maintaining net income is critical to the company's investments in the future, but it's not guaranteed due to the downward pressure of market prices.
(source: Reuters)
