BRUSSELS, March 31 (Reuters) – The European Commission said on Tuesday it has opened an in-depth investigation into planned French state-aid to state-owned utility EDF to build and operate six new nuclear reactors.
The scheme, worth tens of billions of euros, is central to France’s plan to renew its ageing nuclear fleet, and would add about 10 gigawatts of capacity, with the first reactor due to be operating in 2038. A lengthy EU investigation would risk delaying that timeline.
The Commission, which confirmed a Reuters report last week, said it will look into the impact the government subsidized project may have on the energy market’s competition and whether there are enough safeguards to ensure it will not lead to market distortions.
It added it has doubts “on whether the proposed package achieves an appropriate balance between reducing risks to enable the investment and maintaining incentives for efficient behaviour, while avoiding excessive risk transfer to the state”.
Following the Reuters report, French officials have said they expect the investigation to progress swiftly and would not delay the project.
(Reporting by Inti Landauro; Editing by Kate Abnett/Sudip Kar-Gupta)