The electricity price is currently quite stable. Nevertheless, disruptions around nuclear power plants remain topical. While in France the maximum capacity is not being used for the time being, in Belgium extending the life of nuclear power plants is causing problems. In addition, France is announcing steps to bind companies in the renewable energy sector.
The electricity price is moving in approximately the same pattern as in recent weeks. On Tuesday, May 9, the price on the EPEX was €104,10 per megawatt hour. Until two days later, the electricity price rose to the highest point of the week. On Thursday, May 11, the EPEX traded at €109,99. The electricity price fell sharply over the weekend. On Saturday, May 13, the quote dropped to €65,58. On Monday, May 15, the electricity price recovered to €106,38.
Although the electricity market has entered relatively calm waters, nuclear energy remains a shaky topic. Since the summer of 2022, French nuclear power plants have no longer been operating at full power. Although there is no longer any question of halving the capacity, production remains suboptimal. Manager RTE announced that French nuclear power stations will continue to supply less power until 2035. When all nuclear power stations are running at full capacity, French power stations produce an average of around 412 terawatt hours per year. Between 2025 and 2035 the power will only be around 350 terawatt hours.
The nuclear power plants also cause uncertainty in our southern neighbors. The Belgian government announced this week that it is negotiating with the operator Engie about an extension of the lifespan of nuclear reactors Doel 4 and Tihange 3. Until the Ukraine war, the Belgian government planned to close all nuclear power plants before 2025. Now that energy is scarce, the Belgian government wants to keep the power stations open for ten years longer. According to the operator, great progress has been made in the negotiations. Both parties aim for an agreement around June 30.
The Belgian government will most likely have to pay a lot of money. Engie is a major international player and has now relinquished all its nuclear power stations outside Belgium. Keeping the power stations open is not economically viable. Engie appears to be focusing on state support for the dismantling of old nuclear power plants in the form of insurance. The manager currently bears the full costs of dismantling. Such a remediation is an extremely expensive process and takes no less than ten years. The company hopes to be able to agree on a maximum amount for the remediation. That amount is now already reserved. However, if Engie gets its way, the Belgian state will pay all costs exceeding that amount.
France is committed to renewables
In addition, French President Emanuel Macron has announced a large-scale plan for investing in renewable sources. For example, the French government plans to introduce tax breaks for the exploitation of solar panels and wind turbines and the purchase of heat pumps. In addition, Macron hints at the idea of revising the French purchase subsidy for electric cars. To strengthen the competitive position of the European car sector, the French president wants to allocate higher subsidies for European models.
According to analysts, the new stimulus package is a response to the American stimulus package Inflation Reduction Act. With the scheme, the United States is allocating hundreds of billions to greening the economy. Although, according to analysts, the American government is also using the greening policy as an excuse for protectionism. An important condition is that production takes place within the new green economy in America. The tax breaks threaten to cause several European companies to migrate from Europe to the United States.