Why a bailout of EDF by the State at the end of 2020 is inevitable. The falls in nuclear production and electricity prices linked to the coronavirus exacerbate EDF’s structural difficulties and will probably force the State to massively recapitalize the group during 2020, according to a source close to management and analysts interviewed by Reuters. Affected by confinement, which disrupts the maintenance of power plants and led to a drop in electricity demand of up to 20%, EDF has had to give up in recent weeks its targets for 2020 and 2021 and warned that French nuclear production should settle this year at its lowest level in thirty years. “The current crisis plunges EDF into financial difficulties (…) due to the drop in production and the fall in prices on the wholesale markets, which will severely penalize the company by 2021”, a source close to the group’s management said, recalling that the selling prices for 2020 were hedged, however, about a year in advance. “The difficulties will arrive at the end of 2020 and a recapitalization is likely to be necessary at that time”, according to this source.
L’Usine Nouvelle 22nd April 2020 read more »
The world’s leading nuclear power generator is betting big on a future of small-scale, distributed energy. Électricité de France operates 58 nuclear reactors in its home country and owns stakes in several U.S. nuclear plants that it’s now moving to sell. But EDF’s biggest stamp on the American power market has come in large-scale renewables: Its San Diego-based EDF Renewables North America subsidiary has developed and now operates gigawatts of wind and solar farms across the country. Now, EDF Renewables is trying to replicate that success on a much smaller scale. How it fares in the distributed space will be of great interest to other 20th-century energy giants feeling their way toward a transformed, low-carbon future. Over the past few years, and largely through acquisitions, EDF Renewables has amassed one of the most comprehensive U.S. distributed energy businesses, covering solar, energy storage, microgrids and electric vehicle chargers.
GTM 22nd April 2020 read more »