Views: 46
The European Commission has opened an in-depth investigation to assess whether public support that France plans to grant for the construction and operation of six new nuclear reactors is in line with EU State aid rules. Under the EU Treaties, the member states are free to determine their energy mix; hence, France has chosen to promote nuclear energy as part of its national energy policy. The EU-wide energy market saves consumers €34 billion annually; with the deeper integration it could rise to €40-43 billion by 2030.
Renewable energy in the EU
In November 2025, France notified the Commission of its plan to support the construction and operation of six new nuclear reactors with a total electricity generation capacity of 9,990 Megawatts. The six new reactors will be built in pairs at sites of existing nuclear power plants, namely Penly, Gravelines and Bugey. The new units are planned for commissioning between 2038 and 2044, and to have a lifetime of 60 years each. The total construction costs are currently estimated at €72.8 billion.
In July 2020, the Commission published its EU Hydrogen Strategy, setting ambitious goals for clean hydrogen production and use, and launched the European Clean Hydrogen Alliance, bringing together the European hydrogen community (industry, civil society, public authorities). More on the strategy in:
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020DC0301
For example, in May 2026, The European Commission has approved, under EU State aid rules, a €6 billion Italian scheme to support the production of renewable hydrogen for the transport and industrial sectors. The scheme will contribute to the development of renewable hydrogen production capacity in line with the objectives of the EU Hydrogen Strategy and the Clean Industrial Deal.
EU-wide energy strategy: the background
The Commission will assess the State aid to support nuclear energy according to the EU basic law – TFEU, art. 107, 3c; the law allows the member states to facilitate the development of certain economic activities (including the energy sector) under specific conditions. However, the state support “must be necessary and proportionate” and must not “adversely affect trading conditions” that could be “contrary to the common EU interest”.
Following the entry into force of the new electricity market design rules in July 2024, the Commission also assesses compliance with the design principles for two-way contracts for difference set out in Regulation 2024/1747.
The Commission, in its communication of 13 October 2021 on ‘Tackling rising energy prices: a toolbox for action and support’, proposed a toolbox of measures that the Union and its member states may use to address the immediate impact of high energy prices on household customers and businesses, including income support, tax breaks, energy savings and storage measures and to strengthen resilience to future price shocks.
In its communication in March 2022 on ‘REPowerEU: Joint European Action for more affordable, secure and sustainable energy’, the Commission outlined a series of additional measures to strengthen the toolbox and to respond to rising energy prices.
In March 2022, the Commission also established a temporary State aid framework to allow certain subsidies to soften the impact of high energy prices.
Reference to: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202401747
The EU-wide electricity market “design” aims at incentivising the clean energy transition and delivering energy security. It helps to ensure energy’s affordability by boosting competition, improving the long-term markets and allowing consumers to choose energy suppliers.
Source: https://energy.ec.europa.eu/topics/markets-and-consumers/electricity-market-design_en
In 2024, renewables made up 47.5% of EU’s gross electricity consumption, according to Eurostat. At the same time, electricity must also be produced and delivered in sufficient quantities when there is no wind or sun.
French nuclear option
The nation’s project aims to increase the security of electricity supply for France and for neighboring countries, as well as to contribute to the EU-wide decarbonisation targets. The beneficiary of the support is Électricité de France S.A. (‘EDF’), the owner and operator of the entire nuclear power fleet in France. A Special Purpose Vehicle, fully owned by EDF, will be set up to carry out the project.
France plans to support this project through three measures:
= a subsidised loan at a preferential rate, covering 60% of the estimated construction costs;
= a two-way contract for difference running for 40 years to provide stable revenues to the plants;
= a risk-sharing mechanism with a specific list of events, in order to provide protection against risks outside EDF’s control, such as unforeseeable natural disasters and changes in national law.
Presently, based on its preliminary assessment, the Commission has found the project is vital and necessary, and considers that the aid facilitates the development of an economic activity. The Commission also recognises the potential contribution of the project to security of supply and decarbonisation.
Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_26_744
Competition issues
Nevertheless, the Commission considers it necessary to assess whether the measure is fully in line with the EU State aid rules. For this reason, the Commission has decided to open an in-depth investigation in relation to:
= the appropriateness and proportionality of the aid package. Since there are several aid measures that can limit the risk for the beneficiary, it is important to ensure that aid is limited to what is strictly necessary. In particular, the Commission has doubts on whether the proposed package achieves an appropriate balance between reducing risks to enable the investment and maintaining incentives for efficient behavior, while avoiding excessive risk transfer to the State;
= the impact of the measure on competition in the market and whether this is kept to the minimum. In particular, the Commission has concerns that the measure may consolidate or indirectly reinforce EDF’s market power. The Commission will also investigate whether there are sufficient safeguards to ensure that EDF’s trading strategy will not lead to market distortions, and to prevent that aid is transferred to specific market participants; and
= the compliance with other provisions of EU law, in particular with the design principles set out in the EU-wide electricity regulation (2024, art. 19 d, 2).
More on the regulation in: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202401747