France is focusing on the expansion of nuclear power in the energy transition. Most recently, however, the electricity company EDF stumbled from one problem to the next, and Berlin helped out with electricity deliveries. Now the signs are changing.
The troubled French electricity company EDF is once again completely in state hands. As France’s Ministry of Economics announced on Thursday, the state is once again the sole shareholder of the indebted energy giant after a squeeze-out. President Emmanuel Macron wants to decisively expand the country’s nuclear sector to ensure energy security and move closer to carbon neutrality.
Economics Minister Bruno Le Maire spoke of “excellent news for the French”. Resuming full control of EDF was essential, for example to ramp up electricity production faster and to accelerate the program to build six new reactors.
Due to a number of maintenance work on the reactors, some of which are getting on in years, as well as corrosion problems, only about half of the 56 French nuclear reactors were in operation for months last year. Electricity production fell to 279 terawatt hours in 2022, the lowest value in 30 years.
In a squeeze-out, small shareholders are squeezed out of a public company. As the name suggests, this can also happen against their will. However, they will receive an appropriate cash compensation.
Source: Stern
