French power group EDF said on Wednesday it could double its growth target for renewable energy and become a European champion in the field provided a planned re-organisation, code-named Hercules, can get the go-ahead.
State-controlled EDF says the revamp, which will separate the debt-laden nuclear power business from the rest of the company’s assets, will unblock investment, including in green energy.
But the Hercules plan is bogged down in opposition from two quarters: trade unions in France and their political allies, who say it could lead to an eventual breakup of the group, and Brussels, which says the plan raises unresolved anti-trust and state aid questions.
Uncertainty over whether it will go ahead before 2022, when President Emmanuel Macron faces a tough re-election battle, has helped drive EDF’s share price down around 20% since early in January.
Speaking at a committee hearing on EDF in the upper house of the French parliament, EDF Chairman and Chief Executive Jean-Bernard Levy said getting the green light was tough.