Electricity Prices Inquiry: The Relevance of Promoting Nuclear Energy
On July 4th, amidst the legislative elections, the Senate inquiry committee released a 763-page report detailing a series of recommendations aimed at ensuring stable and affordable prices while supporting an energy transition. It particularly reaffirms “the absolute necessity of long-term energy planning”, the extension of the current nuclear fleet, and the construction of 14 EPR2 reactors.
The energy price crisis led the Senate to initiate an inquiry commission in early 2024 to propose long-term solutions for energy production and consumption, while stabilizing electricity prices in France. The Inquiry Commission focused on market structure, European standards, a forward-looking view of electricity consumption, and a review of various scenarios for 2035-2050. In a report published on July 4th, it derived several solutions from numerous hearings, many concerning nuclear power.
14 New EPR 2 Reactors by 2050
The inquiry commission’s report highlights the need to build 14 new EPR2 reactors by 2050. Although the reporter suggests considering studies on a modernized N4 reactor model, he admits that “continuing the EPR2 program is probably the most reasonable strategy”. The commission can only recommend confirming the execution of an ambitious construction program for 14 new reactors. These reactors, designed to be safer and more efficient than previous models, are essential to meet the increasing demand for electricity while reducing greenhouse gas emissions. The construction of these reactors is part of a long-term strategy to enhance France’s nuclear production capacity, thus ensuring a stable and decarbonized energy source.
Extending the Nuclear Fleet Beyond 60 Years
The commission considers electricity production scenarios of 700 and 850 TWh in 2050, with a 60% nuclear share by 2035. For 2050, in addition to commissioning 14 new reactors, the commission insists on enabling the operation of existing reactors beyond 60 years. This extension, based on lessons from abroad (particularly the United States), would maintain high production capacity and is seen as “an extremely competitive solution” while supporting “a deployment of renewable energies”.
Restarting Research on Fast Neutron Reactors (FNR)
The commission recommends restarting research on FNRs. These reactors are capable of extending the lifespan of potentially scarce uranium resources and reducing nuclear waste. Relaunching this research is deemed crucial to ensure the sustainability of nuclear fuel supply and support the transition to a decarbonized economy. Beyond 2050, the reporter stresses the need for “a gradual deployment of a fourth-generation reactor park” and associated cycle facilities.
It should be noted that there is currently no tension in uranium supply, as explained at the Sfen Spring Convention 2024 on today’s and tomorrow’s park feeding.
A Major Refit for the Nuclear Cycle
The inquiry commission emphasizes the closed fuel cycle strategy adopted over 50 years ago. It aims to recycle fuel, thus reducing the volume and toxicity of ultimate waste. The report highlights that France almost entirely masters the downstream fuel cycle, including conversion, enrichment, manufacturing, processing, and recycling but “sees the need to establish a sovereign reprocessing uranium sector”. The report highlights the necessity for a “major refit” of the reprocessing and recycling facilities to extend their operation beyond 2040.
Revising European Texts Contrary to Neutrality
Beyond nuclear, to ensure the stability and competitiveness of the French energy mix, the commission pushes for a revision of European directives to allow greater national flexibility in managing the electric mix. Current texts are sometimes seen as contrary to the principle of technological neutrality and impose disproportionate constraints.
Reducing Electricity Taxes
To lighten consumers’ bills, the commission proposes several fiscal measures. The VAT on basic consumption would be reduced from 20% to 5.5%, and the reporter wishes for the excise tax on electricity to drop from 21 euros to 9.5 euros per MWh. Moreover, he proposes eliminating the Network Tariff Contribution (CTA) and setting a Contract for Difference (CfD) between 60 and 65 euros per MWh, ensuring a stable and predictable price for both consumers and producers.■