The Court of Audit Warns About Risks in EDF’s EPR2 Program

The Court of Audit highlights significant uncertainties surrounding the EPR2 program, revealing persistent financial and technical risks. A critical report calls for resolving these issues before proceeding with new investments.

Partagez:

The Court of Audit has published a sharp report on the construction program for EPR2 reactors, spearheaded by EDF and supported by the French government. This optimized version of the EPR reactors aims to revitalize the nuclear industry in France. However, the document reveals numerous uncertainties that could jeopardize the success of this ambitious project.

The 97-page report emphasizes the challenges yet to be overcome. The accumulation of risks and constraints, coupled with insufficient planning, could lead to the same setbacks experienced during the construction of Flamanville 3. Initially scheduled for 2012, this reactor was only connected to the grid in December 2023, with cost overruns reaching €23.7 billion in constant euros.

A Program Under Financial Strain

The auditors criticize the uncertain profitability of the project. EDF has refused to provide precise data on production costs and projected profitability, despite similar recommendations made in 2020. The Court estimates that the first six EPR2 reactors will cost €67.4 billion, a 30% increase from initial forecasts.

Given these uncertainties, the report recommends delaying the final investment decision, originally planned for early 2026, until financing is secured and technical studies are sufficiently advanced. It also suggests limiting EDF’s financial exposure to international projects to avoid delaying the domestic program’s timeline.

A Sector in Reorganization

Since EDF’s renationalization, several efforts have been made to revive the nuclear sector. The recovery of the Arabelle turbines, which are critical for nuclear plants, represents a step forward. However, the Court considers these measures insufficient given the magnitude of the challenges ahead. Governance, internal processes, and project execution capacity must be further streamlined to avoid repeating past mistakes.

The EPR2 program remains central to France’s energy strategy, as announced by President Emmanuel Macron in 2022. With six reactors planned and an option for eight more, the project aims to bolster France’s energy independence while meeting climate goals. However, the risks of budget overruns and delays demand heightened vigilance.

  • Populaires ​
Q ENERGY inaugurates Europe’s largest floating solar power plant
Nepal Identifies Major Methane Reserve Estimated at 112 Billion m³
Tesla Signs $560 Million Contract for Electricity Storage in China
Europe Commits Major Investments to Electricity Grids and the Clean Industrial Deal
Iraq Suspends Oil Projects Amid Regional Conflict and Strained Logistics
Seoul approves definitive decommissioning of South Korea’s first nuclear reactor
South Korea's Nuclear Safety and Security Commission officially validates the decommissioning of reactor number one at the Kori plant, initiating an unprecedented project for the national industry scheduled to last until 2037.
EnCore Energy raises uranium output and hails Texas nuclear reforms
Uranium producer enCore Energy surpasses three thousand pounds per day at its Alta Mesa ISR complex and sees three new Texas laws as a strong signal for faster nuclear production permits.
IAEA Confirms Concerns About Iranian Enriched Uranium Stockpile
The International Atomic Energy Agency expresses concerns over Iran’s enriched uranium stockpiles following the abrupt suspension of inspections at key sites disrupted by recent attacks whose consequences remain uncertain.
India: NPCIL extends deadline to September 30 for BSR reactor proposals
NPCIL has announced an extension until September 30 for industrial proposals concerning Bharat Small Reactors (BSR), following increased interest from the Indian private sector.
Brno rejects EDF lawsuit over Czech nuclear contract
A regional court has upheld the award of two new reactors in the Czech Republic to Korea Hydro & Nuclear Power, dismissing Électricité de France’s challenge to the €16bn contract in a decisive step for the national energy programme.
EDF anticipates immediate reduction in nuclear output amid heatwave
Facing rising temperatures, EDF anticipates cuts in nuclear production starting early July, primarily due to thermal constraints on rivers used for cooling the power plants.
Fortum selects Westinghouse to study an AP1000 reactor in Finland
The preliminary agreement launches planning and site assessment for a tailored AP1000 reactor, following two years of feasibility study, and enlists Westinghouse and Hyundai to support Fortum’s regional nuclear expansion.
United States: Unprecedented firing of nuclear regulator sparks intense controversy
Donald Trump's unprecedented decision to dismiss Christopher Hanson, a member of the NRC, provokes outrage among former federal officials and raises concerns over the regulatory independence of the U.S. nuclear sector.
Uranium Energy Corp acquires 170 million shares of Anfield Energy Inc.
Uranium Energy Corp strengthens its position in Anfield Energy Inc., now holding approximately 32.4% of the company’s shares following an investment of CAD19.55mn ($14.82mn), significantly expanding its strategic influence in the uranium market.
New York launches major nuclear project to secure its energy supply
New York State plans an advanced nuclear power plant with a 1-gigawatt capacity to meet long-term energy and economic goals, involving significant investment to enhance regional energy independence.
Orano challenges Niger’s decision to nationalize mining company SOMAÏR
Niger announces its intention to nationalize SOMAÏR, a mining company jointly owned with Orano, provoking strong opposition from the French company and paving the way for further international legal tensions.
Russia and Mali Sign Trade Agreements and Target Nuclear Energy
Russia strengthens its economic presence in Mali with new agreements, notably in nuclear energy and gold refining, consolidating strategic cooperation within a rapidly evolving geopolitical context.
United States releases additional $100 mn to restart Palisades Nuclear Plant
The US government grants a fourth payment of $100.45 mn to Holtec International to restart the Palisades Nuclear Plant, pending regulatory approval, marking an unprecedented event in the United States.
EDF secures £4.5 billion from Apollo to finance Hinkley Point C
EDF announces a major agreement with Apollo to raise up to £4.5 billion via bonds to finance the British nuclear project Hinkley Point C, whose costs continue to rise significantly.
France: Anne-Isabelle Étienvre Proposed by Élysée to Head the CEA
The Élysée proposes Anne-Isabelle Étienvre, current Director of Fundamental Research at the CEA, as General Administrator to replace François Jacq, recently appointed President of CNES.
Greece Considers Modular Reactors to Decarbonize its Maritime Industry
Greek Prime Minister Kyriakos Mitsotakis has announced his country's interest in small modular nuclear reactors to meet national energy challenges and decarbonize the maritime sector within the next fifteen years.
TerraPower raises $650 million with NVIDIA for modular reactors
TerraPower, an American nuclear company, secures $650 million funding from investors, including NVIDIA, to develop its Natrium modular reactors in the United States and internationally.
EDF and the French State Agree on €70 Billion Plan for EPR2
EDF and the French state finalize a €70 billion financing plan for six EPR2 nuclear reactors, including a specific territorial coordination framework in Gravelines led by Michel Marbaix, awaiting European approval by 2026.
Newcleo and Nextchem launch joint venture focused on modular nuclear reactors
Maire S.p.A and Newcleo form strategic partnership to industrialise the development of 200 MW modular nuclear power plants, via a joint venture majority-owned by Nextchem.
Four European organisations join forces to develop innovative nuclear reactor
A new European consortium launches the design of a small lead-cooled modular reactor, targeting global commercialisation by 2039, with a demonstration scheduled as early as 2035.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS