Feb 14, 2025 (MarketLine via COMTEX) --
This investment is crucial to meet growing demand and accommodate new nuclear reactors.
France will need to invest ae100bn ($104bn) by 2040 to enhance and expand its electricity grid, according to state grid operator RTE.
The investment is crucial to meet growing demand and accommodate new nuclear reactors.
The French government aims to position the country as Europe's AI hub, as reported by Reuters.
Companies have pledged ae109bn for infrastructure development, including data centres.
RTE highlights the necessity of extensive grid development to support these new facilities.
RTE CEO in charge of economy, strategy and finance Thomas Veyrenc stated: "The first important point on financing is that RTE is a public monopoly...it can be financed at a low cost. We can finance ourselves by borrowing on the bond markets."
Veyrenc emphasised the importance of ensuring the capability to execute the plan effectively, which is crucial for rating agencies.
More than half the anticipated investment will focus on new demand centres, including data centres and electrical vehicle charging stations, and connecting low-carbon power sources such as nuclear and renewables.
RTE described France's situation as "paradoxical," with numerous projects emerging but fewer than 15% confirmed for network commencement.
The annual investment rate in the electricity grid must more than triple up to 2030, reaching ae7.5bn from ae2.3bn in 2024, and will still not match Germany's plans.
France intends to construct six new nuclear reactors to support future electrification.
Up to February 2025, 140 low-carbon or digital projects totalling 21GW have signed grid connection contracts, more than doubling the power currently utilised by those sectors.
FranceaEUR(TM)s state-run energy operator EDF recently connected the Flamanville 3 nuclear reactor to its national power grid - the first expansion of the countryaEUR(TM)s nuclear power network in 25 years.
The reactor was integrated on 21 December 2024, following extensive tests and inspections, and is now producing 100MW of electricity.
Located in Normandy, Flamanville 3 is a European pressurised reactor with 1.6GW capacity, making it FranceaEUR(TM)s largest and one of the most powerful reactors globally.
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