Concerns surrounding the EPR nuclear reactor program have escalated, with the Court of Auditors highlighting financial ambiguities and significant delays. The EPR2 project faces unresolved risks, prompting calls for a delay in the investment decision until financing and design issues are addressed. Cost overruns for the Flamanville reactor exemplify these challenges, with estimates for future EPR2 reactors rising sharply. EDF’s leadership supports a structured approach to secure necessary investments before finalizing agreements on the program’s financial framework.
Concerns Over EPR Nuclear Reactor Program
The Court of Auditors has raised significant concerns regarding the future of the EPR nuclear reactor construction program, urging both the State and EDF to address numerous uncertainties before proceeding further. This caution comes as the program faces unresolved financial ambiguities.
In a detailed report spanning 97 pages, the financial authority warns that “the accumulation of risks and constraints could lead to a failure of the EPR2 program.” They highlighted that the EPR reactor in Flamanville, Normandy, was connected to the power grid a staggering 12 years later than originally planned, on December 21.
Financial Risks and Delays
Chief among the concerns are delays in the development of the EPR2 design, the unpredictable costs associated with the initial three reactor pairs, and the lack of a clear financial strategy for the program. Pierre Moscovici, the first president of the Court of Auditors, stated these issues during a press conference.
The EDF board’s recent decision to cut the financial allocations for preparatory work on future EPR2 reactors in 2025 is indicative of the ongoing financial uncertainties, according to Moscovici. Following a project fraught with challenges, the costs for Flamanville 3 have skyrocketed from an initial estimate of 3.3 billion euros to a staggering 19.3 billion euros in 2015 terms, which translates to approximately 22.6 billion euros in 2023, including financing costs.
The Court further notes that the actual completion cost of Flamanville 3 is even higher, reaching 20.4 billion euros in 2015 terms or about 23.7 billion euros in 2023. This increase of 1.3 billion euros reflects revised calculations for provisions and financing costs.
Even with efforts to restructure the sector to align with President Emmanuel Macron’s vision for a nuclear revival, the Court highlights that “persistent” risks remain. In February 2022, the president announced plans to construct six new EPR2 reactors, with an option for eight additional units, signaling a significant shift after years of stagnation in nuclear development.
Despite recent governance reforms at EDF following its renationalization, including regaining control over Arabelle turbines, the sector still appears unprepared. The Court expresses concern over the “mediocre profitability” projected for Flamanville 3 and emphasizes the need for clarity on financing conditions.
Given the uncertainties surrounding the EPR2 program, the Court recommends delaying the final investment decision, initially scheduled for early 2026, until financing is secured and detailed design studies are sufficiently advanced. Additionally, they suggest minimizing EDF’s financial exposure in international projects to ensure that domestic schedules remain unaffected.
EDF’s CEO, Luc Rémont, concurs with this approach, underscoring the necessity for a preliminary contract with the State to establish a framework for the required investments before reaching an agreement with Brussels on the financial structure of the EPR2 program. As of late 2023, estimates indicate that the construction cost for the first six EPR2 reactors has surged by 30%, from 51.7 billion to 67.4 billion euros, under unchanged economic conditions, not accounting for inflation.