By Edith Hancock
The European Union is investigating a French plan to subsidize the construction and operation of six new nuclear reactors by Electricite de France.
The European Commission said on Tuesday it opened an in-depth probe into the project to build six new reactors at sites of existing nuclear power plants in Penly, Gravelines and Bugey, with construction costs estimated at 72.8 billion euros ($83.45 billion). France flagged the plan to the commission for review in November 2025, it said.
The commission said the initiative would see France provide a subsidized loan that would cover 60% of estimated construction costs, and include a 40-year contract for difference and a mechanism to protect against risks such as natural disasters or changes in national law.
"At this stage, based on its preliminary assessment, the commission has found the project necessary and considers that the aid facilitates the development of an economic activity," the EU's executive arm said in a statement. However, it added that officials want to check the proportionality of the support and its effect on competition in the market.
"The commission has concerns that the measure may consolidate or indirectly reinforce EDF's market power," it said. It also said that it has concerns over whether the state aid package appropriately balances reducing risk to enable the investment and maintaining incentives to operate efficiently.
EDF didn't immediately respond to a request for comment.
Write to Edith Hancock at edith.hancock@wsj.com
(END) Dow Jones Newswires
March 31, 2026 09:30 ET (13:30 GMT)
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