France, a major European nuclear power, has planned to build six new nuclear power plants by the end of 2026, and is discussing whether to build eight more large nuclear reactors based on this.
On Wednesday (November 22nd) local time, the French government announced its latest energy strategy, "aimed at freeing France from its dependence on fossil fuels," which includes doubling the deployment speed of solar projects, widely deploying wind energy projects at sea, and restarting new nuclear energy projects.
According to the report, this 102 page document will be solicited for public opinion from November 22 to December 15, and this strategy will be included in the "Energy Production Act" to be introduced next year. Previously, French President Macron mentioned that as part of the 2050 carbon neutrality plan, the country may build up to 14 new nuclear reactors by 2050.
In addition to promoting the establishment of more new nuclear power plants, the Macelon government also plans to extend the lifespan of existing nuclear power plants to meet the electricity demand of the French economy during its transition from fossil fuel dependence. Data shows that currently, oil accounts for 37% and natural gas accounts for 21% of France's energy consumption.
The main objectives of France's energy strategy include:
By 2050, energy consumption will decrease by 40% to 50%;
By 2035, the share of fossil fuels in energy consumption will decrease from 58% to 29%;
The electricity generation in 2030 will increase by 10% compared to 2021, and by 55% in 2050;
By 2035, double the production of low-carbon thermal energy.
In order to support EDF in addressing the issue of reactor aging, the French government has also acquired a minority stake in it. Last week, French Minister of Economy and Finance Bruno Le Maire, Minister of Energy Transition Agnes Panier L ü nache, and EDF Chairman Luc Raymond held a press conference to announce an agreement on future regulation of nuclear power tariffs.
According to the new agreement, starting from 2026, the average balanced price of nuclear power will be 70 euros per megawatt hour, which will give EDF sufficient profit margin to drive new projects. The analysis also believes that the new agreement will help maintain stability in the French electricity market, protect consumers and businesses from the impact of high electricity prices, and ensure the funding required for EDF's future construction of nuclear power.
On Tuesday, Panier L ü nache told the media, "By 2026, we will have a more accurate understanding of the deployment speed of each energy source." She also mentioned that EDF will add the 57th reactor to the French Flameville power grid, and plans to increase nuclear power facilities in France and the UK will also make progress.
Against the backdrop of the global nuclear renaissance and numerous production challenges, earlier this week, the futures of the uranium raw material yellow cake contract tracked by the New York Mercantile Exchange briefly touched $80.25 per pound, breaking the $80 mark for the first time in 15 years. During the year, the cumulative increase in uranium prices reached 55%, even surpassing gold.
Data from BMO Capital Markets shows that although spot uranium trading is light, long-term uranium prices, which are more important for power plants, have also been on the rise. Colin Hamilton, Managing Director of BMO Commodity Research, wrote in a report that "utility contracts continue to heat up, with almost no sufficient production to meet uncovered utility demand