France is planning to make an interest-free loan to utility EDF to overcome funding problems with its nuclear development plans, the Reuters news agency reports.
The aim is to build six reactors to revitalise the country’s ageing fleet of 18 nuclear power stations, whose 57 reactors supply 70% of the country’s electricity.
The size of the loan is not known, but Reuters notes that the programme has been roughly costed at €50bn, although later reports suggested it could be nearer to €67bn.
This would be sure to be a controversial decision, given France’s ballooning public debt. AP reported yesterday that the government’s plans to raise taxes and cut spending was likely to lead to a no-confidence vote.
Prime minister Michel Barnier warned that the fall of his government would lead to turmoil, particularly on the financial markets.
President Emmanuel Macron announced the plan to add 10GW to the country’s installed capacity in 2022, but he did not say how it would be paid for.
According to Reuters’ sources, “intense discussions” are taking place over the loan amount, and the sharing of risk between EDF and the French government.
The loan would be approved by the finance ministry once EDF submits its final costing for the projects, which is expected early next year. Work on the first reactor is due to begin in 2017.
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