Electricity prices surge across Europe, fearing France may need to reduce its nuclear production, such as Reuters.
The country’s nuclear regulator ASNR reported a “tip” of possible stress corrosion in Civaux 2 reactors in the Norvell-Aquitain region of France. Although there is no confirmation of corrosion, further testing is required.
In response to the news, France’s early base load power contract reached a four-month high in early trading on Wednesday, June 11, and later settled at a price of €65.80 per megawatt-hour ($75.38).
Less than three years ago, the operator EDF encountered stress corrosion cracks in the same reactor. This led to a sharp drop in France’s nuclear production, reaching a 34-year low and causing electricity prices to soar.
An EDF spokesperson said that the inspection is currently underway in CIVAUX 2 as part of the regular annual maintenance and the results are pending. Meanwhile, benchmark European natural gas contracts increased by 2.3% to 35.58 euros per megawatt-hour (MWH).
A trader who spoke with Reuters highlighted the risks of the French nuclear fleet as a major factor affecting natural gas demand on Wednesday.
DNB analysts expressed concerns that the report on CIVAUX 2 could trigger new tensions in the European power market.
Thinking Energy analysts have linked the rise in European gas prices and the European pre-basis contracts directly to news about potential defects in reactors.
However, KPLER analyst Hazma Aourach downplayed the risk and noted that the EDF now has more experience and resources to address any issues related to pressure corrosion.
France has 18 commercial nuclear power plants, all of which are operated by the EDF, with a total of 57 operable reactors.
The country has 70% of its electricity from nuclear power due to its long-term policy of establishing energy security. 17% of the country’s electricity comes from recycled nuclear fuel.
“The French nuclear output problem drives power prices to rise” was originally created and published by global data-owned brand Power Technology.
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