PARIS, Feb 16 (Reuters) - French nuclear operator EDF said on Monday it faces increased maintenance costs of around 1.5 million euros to 3.75 million euros a year as it has to reduce power at its
EDF Faces Rising Maintenance Costs Due to Electricity Oversupply
Impact of Electricity Oversupply on EDF
PARIS, Feb 16 (Reuters) - French nuclear operator EDF said on Monday it faces increased maintenance costs of around 1.5 million euros to 3.75 million euros a year as it has to reduce power at its nuclear reactors to respond to increased electricity supply and slow demand.
Rising Maintenance Costs
Around 70% of French electricity comes from nuclear power, which makes up about half of state-owned EDF's revenue, but a recent rise in solar power to the grid has changed how the nuclear reactors operate.
Changes in Energy Production
The increase in renewable energy has led to a fundamental change in how EDF modulates production, causing it to reduce output during the middle of the day when there is a lot of sunlight compared to previously when it would do this during periods of low demand in the evening or at the weekend, EDF said.
Economic Implications of Modulation
Modulation - or the quick reduction of power output to adjust for an influx of renewable energy - doubled in 2024 compared to 2019 as more renewable energy capacity was added to the French grid and demand growth remained sluggish, EDF said.
"The main impact is that increased flexibility will lead to increased maintenance needs and therefore increased costs, simply because some equipment will be used more frequently," Deputy Director of EDF's Nuclear Production Division Jean-Marie Boursier said in a call with journalists.
Modulation remains a purely economic issue and has no impact on the safety of the nuclear fleet, EDF said, adding that the solution is to increase electricity consumption to meet current production volumes.
France released its new multi-annual energy planning law last week, calling for an increase in renewable energy production and the use of public money to stimulate French demand growth, which has remained sluggish.
(Reporting by Forrest Crellin; Editing by Alexander Smith)
