EDF announced on Monday for the first time “the signing of green bank loans” dedicated to financing the maintenance and extension of the life of its existing nuclear park, for an amount of “around 5.8 billion euros.”
These loans, which will be repaid over a period of three to five years, “were arranged with large international banks, including BNP Paribas, Bank of America, Crédit Agricole CIB, ING, Natixis CIB, Société Générale, Wells Fargo.” EDF detailed in a press release.
This is “the first time” that EDF contracts “green loans”, a category that responds to a European classification, to finance its nuclear activities, a spokesperson told AFP. The funds will make it possible to finance “investments in existing nuclear reactors in France within the framework of extending their useful life”, which EDF wants to extend to 60 years, or even more.
Compatible with the European green taxonomy
These investments feature in EDF’s “Green Financing Framework”, a framework that defines the activities of the French energy company (renewable or nuclear electricity, energy efficiency, etc.) compatible with the European green taxonomy. This classification system was implemented by the EU to mobilize private investment towards economic activities considered environmentally sustainable.
In July 2022, the European Parliament officially included nuclear energy and gas among the “sustainable” energies that contribute to the fight against climate change, a controversial decision that angered environmentalists. The French reactors were initially authorized with no operating time limit, but EDF had initially planned a useful life of 40 years.
54.4 billion euros of debt
In 2015, EDF launched the “grand carénage”, an extensive program to modernize and prolong the useful life of its plants beyond 40 years, the cumulative cost of which amounts to 66 billion euros for its first (2015-2021) and second phase (2022-2028), according to an estimate provided by EDF in March 2023.
While French power plants are on average between 30 and 40 years old, the government wants to build up to 14 new reactors and maximize those that can be expanded as part of its plan to revive carbon-free electricity production. which should allow France to move away from fossil fuels, responsible for global warming.
Given the colossal investment needs to make this program a reality, EDF is saddled with an abysmal debt of 54.4 billion euros. The French nuclear park has 56 reactors in operation, put into operation between 1979 and 2002.
Source: BFM TV
