Commission opens formal State aid assessment of French support to new nuclear programme

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The European Commission has opened an in-depth investigation to assess whether public support that France plans to grant for the construction and operation of six new nuclear reactors is in line with EU State aid rules.

The opening of an in-depth State aid investigation is a common step when complex aid packages are involved, such as in the case at hand. It will give France and interested third parties the opportunity to submit comments. It does not prejudge the outcome of the investigation.

In November 2025, France notified the Commission of its plan to support the construction and operation of six new nuclear reactors with a total electricity generation capacity of 9,990 Megawatts.

The six new reactors will be built in pairs at sites of existing nuclear power plants, namely Penly, Gravelines and Bugey. The new units are planned for commissioning between 2038 and 2044, and to have a lifetime of 60 years each. The total construction costs are currently estimated at €72.8 billion.

Under the EU Treaties, Member States are free to determine their energy mix. France has chosen to promote nuclear energy as part of its national energy policy.

The project aims to increase the security of electricity supply for France and for neighbouring countries, as well as to contribute to the Union’s decarbonisation targets. The beneficiary of the support is Électricité de France S.A. (‘EDF’), the owner and operator of the entire nuclear power fleet in France. A Special Purpose Vehicle, fully owned by EDF, will be set up to carry out the project.

France plans to support this project through three measures:

• a subsidised loan at a preferential rate, covering 60% of the estimated construction costs;
• a two-way contract for difference running for 40 years to provide stable revenues to the plants;
• a risk-sharing mechanism with a specific list of events, in order to provide protection against risks outside EDF’s control, such as unforeseeable natural disasters and 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 Commission also recognises the potential contribution of the project to security of supply and decarbonisation.

Nevertheless, the Commission considers it necessary to assess whether the measure is fully in line with EU State aid rules. For this reason, the Commission has decided to open an in-depth investigation in relation to:

• the appropriateness and proportionality of the aid package. Since there are several aid measures that can limit the risk for the beneficiary, it is important to ensure that aid is limited to what is strictly necessary. In particular, the Commission has doubts on whether the proposed package achieves an appropriate balance between reducing risks to enable the investment and maintaining incentives for efficient behaviour, while avoiding excessive risk transfer to the State;
• the impact of the measure on competition in the market and whether this is kept to the minimum. In particular, the Commission has concerns that the measure may consolidate or indirectly reinforce EDF’s market power. The Commission will also investigate whether there are sufficient safeguards to ensure that EDF’s trading strategy will not lead to market distortions, and to prevent that aid is transferred to specific market participants;
• the compliance with other provisions of EU law, in particular with the design principles set out in Article 19d(2) of the Electricity Regulation.

Background

State aid to support nuclear energy can be assessed directly under Article 107(3)(c) TFEU, which allows Member States to facilitate the development of certain economic activities under specific conditions. The support must be necessary and proportionate and must not adversely affect trading conditions to an extent contrary to the common interest. Following the entry into force of the new electricity market design rules in July 2024, the Commission also assesses compliance with the design principles for two-way contracts for difference set out in Regulation 2024/1747.

For more information

The non-confidential version of the decision will be made available under the case number SA.119469 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.