EDF will make 6 GW hydropower available as part of a French agreement with EU

The Prime Minister's Office announced on Thursday that EDF, the French state-owned utility, will offer 6 gigawatts in hydroelectric power to third parties as part of an agreement with the European Commission.

The office of Prime Minister Francois bayrou said that this virtual capacity would be sold under the supervision and through competitive auctions by the Energy Regulatory Commission.

France has been criticised by the Commission over the past decade for its hydroelectric concessions. This includes its failure to open expired concessions up to competition, and EDF's dominant position.

Bayrou's office stated that "an agreement in principle has been reached (with the Commission), on the terms of a massive revival in investment in our dams, and valleys. This will benefit the energy transition and the water management."

The French government announced that it will switch from a system of concessions to one of authorizations for the hydropower industry, but did not specify any details.

The plan includes the option of keeping current operators, as the Prime Minister stated that this is "essential" to continue the operation of the facility in terms of safety, water, local skills, jobs and bringing value back to the region in the public's interest.

The statement didn't specify if foreign utilities could bid on EDF's Hydropower.

Bayrou announced that a bill implementing the reform would be introduced soon.

He said that the plan made an exception for infrastructure owned by the Compagnie Nationale du Rhone, which has a special legislative status.

Groupe Caisse des Depots, local authorities and public shareholders own 50.03% CNR's total capital. Utility Engie owns the remainder.

According to CNR's website, the company has a hydropower capacity of 4 GW and produces 25% of France’s hydroelectricity. Geert de Clercq is reporting and Frances Kerry is editing.

(source: Reuters)