Taxing Power Plants in 2025 Without Burdening Electricity Bills

The French government is exploring a new tax on power plants to balance the 2025 budget without increasing electricity costs for consumers, a move that faces strong opposition from industry stakeholders.

Partagez:

The French government is seeking to balance its 2025 budget by imposing new taxes on electricity production plants while avoiding an increase in consumer electricity bills. This approach aims to engage energy producers without hindering the ongoing energy transition. However, this proposal raises concerns among major industry players, who fear repercussions on their future investments.

One of the options being considered is the “contribution on inframarginal rents” (Crim), aimed at power plants exceeding 260 megawatts, including nuclear, hydroelectric, wind, and gas facilities. This tax could primarily impact EDF (Électricité de France), due to its significant nuclear portfolio, with an estimated burden of €2.7 billion. Other major producers like Engie and TotalEnergies would also be affected, albeit to a lesser extent.

Reactions from Industry Stakeholders

Representatives from renewable energy sectors and other market players strongly oppose this measure, arguing that it could hinder the necessary investments for decarbonization and energy supply security. Mattias Vandelbulcke, Strategy Director at France Renouvelables, states that “taxing installed production capacities sends a negative signal” for ecological initiatives. Similarly, the Union Française de l’Électricité (UFE) shares these concerns, highlighting the risk of reduced incentives to invest in cleaner technologies.

Financial Impact on EDF

EDF, facing a debt of €54.2 billion, would see its cash flow further strained by this new tax. EDF CEO Luc Rémont warned that implementing the Crim could impede the group’s investment plans, including the nuclear revival program that plans to construct new EPR2 reactors. This situation might force EDF to consider unprecedented options, such as taking dividends from its profits, a first since 2016.

Government’s Stance

Agnès Pannier-Runacher, Minister of Ecology and Energy, opposes the Crim, stating that a tax on energy producers risks being directly passed on to French consumers’ bills. She emphasizes the importance of controlling energy price increases, especially as markets show signs of stabilization. Prime Minister Michel Barnier also indicated that the decline in inflation should translate into reduced costs for consumers without necessarily increasing taxes on energy producers.

Perspectives and Uncertainties

Since spring, discussions between the government and electricity sector players have taken place, but no official decision has been made. The Crim remains one of several options to achieve budgetary goals, but its adoption could have significant implications for the French energy sector. The debate continues as the government strives to find a balance between funding its projects and avoiding penalties on consumers and ecological initiatives.

According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.
The European Commission unveils an ambitious plan to modernize electricity grids and introduces the Clean Industrial Deal, mobilizing hundreds of billions of euros to strengthen the continent's industrial and energy autonomy.
In the United States, regulated electric grid operators hold a decisive advantage in connecting new data centres to the grid, now representing 134 GW of projects, according to a Wood Mackenzie report published on June 19.
The French National Assembly approves a specific target of 200 TWh renewable electricity production by 2030 within a legislative text extensively debated about the future national energy mix.
In 2024, US CO₂ emissions remain stable at 5.1bn tonnes, as the Trump administration prepares hydrocarbon-friendly energy policies, raising questions about the future evolution of the American market.
The early publication of France's energy decree triggers strong parliamentary reactions, as the government aims to rapidly secure investments in nuclear and other energy sectors.
Seven weeks after the major Iberian power outage, Spain identifies technical network failures, while the European Investment Bank approves major funding to strengthen the interconnection with France.
The European Union has announced a detailed schedule aiming to definitively halt Russian gas imports by the end of 2027, anticipating internal legal and commercial challenges to overcome.