TotalEnergies SE is ready to buy nuclear power from Electricite de France SA through long-term contracts to help the debt-laden utility fund the construction of new atomic plants, said the oil and gas giant’s Chief Executive Officer Patrick Pouyanne.
“I’m ready to sign contracts of 15 to 20 years,” Pouyanne said in a interview on BFM Business television on Friday. “I need it to supply my future clients,” and the company’s power-intensive refineries, he said.
EDF, which returned under full state ownership during Europe’s energy crisis last year, has pledged to provide nuclear power at a discount to electricity-hungry manufacturers via long-term contracts in exchange for prepayments. The agreements would include other conditions such as supply curtailment arrangements during periods of peak demand.
In November, the government gave the nationalized utility six months to prove that it can supply power at a competitive cost for energy-intensive businesses, while it plans to cap the utility’s nuclear revenue in cases of high prices from 2026, when an existing regulation expires. Rivals such as Engie SA have expressed concern that EDF might profit from its dominant position on the French power market, drawing scrutiny from the energy regulator.
The government could intervene as a broker between EDF and power-intensive companies, Pouyanne said. Talks between TotalEnergies and EDF haven’t started yet, he said.
The construction of six new reactors, which is due to start in the coming years, will cost more than €55 billion ($60 billion), Finance Minister Bruno Le Maire said this month. Le Maire and EDF Chief Executive Officer Luc Remont have said the nuclear giant will need some support from the government for that program, as the rollout of renewables will also requires increased expenditure to upgrade the power grid.
Source: Financial Post
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