By Forrest Crellin PARIS, March 25 (Reuters) - A European Union investigation into France's state aid funding scheme for the construction of six nuclear reactors is expected to progress quickly and
EU Review of France's Nuclear Reactor Funding Unlikely to Cause Delays
By Forrest Crellin
EU Investigation and Impact on France's Nuclear Expansion
Overview of the EU Investigation
PARIS, March 25 (Reuters) - A European Union investigation into France's state aid funding scheme for the construction of six nuclear reactors is expected to progress quickly and will not delay the projects, a French energy ministry official said on Wednesday.
Financial Scope and Strategic Importance
The new reactors are expected to cost tens of billions of euros and are central to France's plan to renew its ageing nuclear fleet. They would add about 10 gigawatts of capacity, with the first reactor due to be operating in 2038.
Replacing Old Plants and Meeting Future Demand
The new plants would replace old ones and secure future energy supplies to cover rising demand over the next decade, driven in part by the energy needs of data centres.
Timeline and Process of the EU Review
The first step in the investigation into France's state aid package is expected by the end of March with a European Commission declaration, the official said.
Comparison with Previous Models
The process is expected to go quickly in part because it follows previously approved models like one used to finance the development of two nuclear reactors in the Czech Republic, the official said.
"We are confident that we are still on schedule," the official said.
Next Steps for EDF and Market Implications
The next step for operator EDF is to make a final investment decision, expected in the second half of the year.
Concerns Over Market Dominance
Brussels is concerned that the six new power plants would further entrench state-owned and dominant energy player EDF's market share. The company already holds more than 75% of France's net electricity production.
Potential Legal Challenges
An in-depth EU investigation would also enable the Commission to build an ironclad case in the event that Austria's government - which opposes nuclear power - launches a legal challenge against its approval of the deal, which some EU officials deem likely, a source told Reuters on Tuesday.
(Reporting by Forrest Crellin; Editing by Inti Landauro, Gianluca Lo Nostro and Hugh Lawson)
