🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Explainer-Why nuclear-powered France faces power outage risks

Published 09/12/2022, 11:02 pm
Updated 09/12/2022, 11:14 pm
© Reuters. View of French utility EDF's Penly Nuclear Power Plant in Petit-Caux, near Dieppe, France, December 9, 2022. REUTERS/Benoit Tessier
EDF
-

PARIS (Reuters) - France is bracing for possible power outages in the coming days as falling temperatures push up demand while state-controlled nuclear group EDF (EPA:EDF) struggles to bring more production on line.

WHY CAN'T FRANCE MEET DEMAND?

France is one of the most nuclear-powered countries in the world, typically producing over 70% of its electricity with its fleet of 56 reactors and providing about 15% of Europe's total power through exports.

However, EDF has had to take a record number of its ageing reactors offline for maintenance this year just as Europe is struggling to cope with cuts in Russian natural gas supplies used for generating electricity.

That has left France's nuclear output at a 30-year low, forcing France to import electricity and prepare plans for possible blackouts as a cold snap fuels demand for heating.

Graphic: EDF sees production returning to past trends EDF sees production returning to past trends, https://www.reuters.com/graphics/FRANCE-POWER/znvneygybpl/chart.png WHAT ARE EDF'S MAINTENANCE PROBLEMS?

While EDF normally has a number of its reactors offline for maintenance, it has had far more than usual this year due to what is known as stress corrosion on pipes in some reactors.

At the request of France's nuclear safety watchdog, EDF is in the process of inspecting and making repairs across its fleet since detecting cracks in the welding connecting pipes in one reactor at the end of last year.

Years of under-investment in the nuclear sector mean that there is precious little spare capacity to meet demand while reactors are offline for maintenance.

France also lacks specialised welders and other workers in sufficient numbers to be able to make repairs fast enough to get reactors back online.

WHAT IS BEING DONE?

In the very short term, there is little that can be done to get more reactors online faster, leaving the government to plan for voluntary cuts at peak demand periods and limited forced blackouts.

Meanwhile, EDF and others in the French nuclear industry are on a recruitment drive for the next generation of welders, pipe-fitters and boiler makers, going so far as to set up a new school to train them.

President Emmanuel Macron wants a new push in nuclear energy and has committed to building six new reactors at a cost his government estimates at nearly 52 billion euros ($55 billion).

© Reuters. View of French utility EDF's Penly Nuclear Power Plant in Petit-Caux, near Dieppe, France, December 9, 2022. REUTERS/Benoit Tessier

As a first step, the government is in the process of buying out EDF's minority shareholders and fully nationalising the debt-laden group, which it says is necessary to make the long-term investments in new reactors.

($1 = 0.9471 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.