France's new Energy Law slashes Renewable Targets, Eases Pressure on EDF
After years of debate, France has finally passed a new law on energy that reduces its "wind and solar" targets and removes the mandate for EDF (the state-owned firm) to shut down nuclear plants.
We need to stop the internal family fighting. "We need both renewables and nuclear," said Roland Lescure, finance minister.
After almost three years, the law will be passed by decree after bitter debate among legislators. It also reverses an earlier legal mandate that required 14 reactors to close.
This was a promise made by President Emmanuel Macron during his 2017 election campaign. He later reversed course and backed nuclear expansion, with a plan to build at least six reactors.
The decision to reduce renewables will 'protect EDF which operates a fleet 57 reactors as the power demand is expected to grow more slowly over the next 10 years than originally anticipated. The company struggles to remain competitive as wind and solar power in Europe has pushed prices down and forced reactors into lower output.
The PPE is a new 10-year framework that aims to increase?EDF's production of electricity by 5%, from its current fleet, in 2035.
Lescure said that nuclear is the backbone to our electricity system, and that a new reactor would be inaugurated in 2038.
EDF CEO Bernard Fontana said that the proposal would help the company achieve its goals.
FAR-RIGHT CALL FOR MOTION OF NO CONFIDENCE
The law sparked a fierce debate among legislators, pitting the support for renewable subsidies versus financing new nuclear power at a moment when France is grappling with high debt.
Marine Le Pen, the leader of the National Rally's far-right wing, wrote a letter to French lawmakers in which she said that the new targets for power intensified and pursued "a policy" that would impoverish and ruin the French people, especially our agriculture and industry.
She asked all MPs to submit a "cross party no-confidence motion" before next Thursday as a reaction to the new Energy Law, and added that her own party would, by default file its own.
The PPE governs solar and wind tenders. A decision in this matter will be welcome by the wind industry which has been struggling due to the uncertainty surrounding the plans and the delayed tenders.
Wind and solar targets were lowered to 105-135 GW of installed capacity in 2035, from drafts which had originally called for 133-163GW.
Greenpeace France released a statement saying that if this PPE was "more than two years behind" on paper, then it would be at least 10 years behind its vision for an energy transformation.
The PPE reduces France's target of 18 GW for offshore wind installed capacity in 2035 to?15GW, down from the 18 GW that was submitted by the government for consultations in 2024.
The target for the onshore wind power capacity has been reduced from 45 GW to 35-40 GW.
The report said that solar capacity would be between 55-80 GW in 2035. This is down from the previous forecast of 75 to 100 GW.
By 2030, the law requires that France consumes 60% of its energy from decarbonised electricity, up from 60% currently.
Emeric de Vigan, director of energy consultancy 42 Advisors said that the new law will not lead to lower prices. This could prevent end-users from switching from oil- and gas-based fuels to electricity. Reporting by Gianluca Nostro and America Hernandez, editing by Joe Bavier; Jason Neely, William Maclean
(source: Reuters)
