EDF’s nuclear reactors normally export large amounts of electricity across Western Europe.
Photo:
STEPHANE MAHE/REUTERS
PARIS—
EDF SA
lost around $19 billion last year after outages at its nuclear reactors left the state-controlled power company—and much of Western Europe—more exposed to the energy crisis sparked by the war in Ukraine.
Pipe corrosion found at around 10 of EDF’s 56 nuclear reactors led it to shut down more than half of them over the summer. As a result, EDF was forced to buy electricity on Europe’s wholesale power market, where prices had soared because of Russia’s decision to cut shipments of natural gas to the continent.
EDF said that the nuclear outages cost it 29.1 billion euros, equivalent to around $31 billion, in pretax earnings. The French government’s decision to cap power prices lowered earnings by another €8.5 billion. Unusually low hydropower generation caused by drought conditions over the summer cost the company another €2.5 billion.
The nuclear outages had ripple effects across the continent. EDF’s nuclear reactors normally export large amounts of electricity to neighboring countries, helping stabilize power prices in Germany, Spain, Italy and Belgium. Instead, France became a net importer of electricity for the first time since 1980, putting upward pressure on prices.
France and its neighbors also burned more natural gas to replace the lost nuclear generation, at a time when Europe was desperate to cut consumption. Gas used for power generation in France rose 34% last year, despite record-high gas prices.
EDF said 43 of its 56 reactors are now operating. The company has identified 16 reactors most at risk of corrosion, and said that 10 of those have been or are currently being repaired. EDF plans to replace pipes on the remaining six reactors and one other reactor by the end of this year.
Write to Matthew Dalton at Matthew.Dalton@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
EDF’s nuclear reactors normally export large amounts of electricity across Western Europe.
Photo:
STEPHANE MAHE/REUTERS
PARIS—
EDF SA
lost around $19 billion last year after outages at its nuclear reactors left the state-controlled power company—and much of Western Europe—more exposed to the energy crisis sparked by the war in Ukraine.
Pipe corrosion found at around 10 of EDF’s 56 nuclear reactors led it to shut down more than half of them over the summer. As a result, EDF was forced to buy electricity on Europe’s wholesale power market, where prices had soared because of Russia’s decision to cut shipments of natural gas to the continent.
EDF said that the nuclear outages cost it 29.1 billion euros, equivalent to around $31 billion, in pretax earnings. The French government’s decision to cap power prices lowered earnings by another €8.5 billion. Unusually low hydropower generation caused by drought conditions over the summer cost the company another €2.5 billion.
The nuclear outages had ripple effects across the continent. EDF’s nuclear reactors normally export large amounts of electricity to neighboring countries, helping stabilize power prices in Germany, Spain, Italy and Belgium. Instead, France became a net importer of electricity for the first time since 1980, putting upward pressure on prices.
France and its neighbors also burned more natural gas to replace the lost nuclear generation, at a time when Europe was desperate to cut consumption. Gas used for power generation in France rose 34% last year, despite record-high gas prices.
EDF said 43 of its 56 reactors are now operating. The company has identified 16 reactors most at risk of corrosion, and said that 10 of those have been or are currently being repaired. EDF plans to replace pipes on the remaining six reactors and one other reactor by the end of this year.
Write to Matthew Dalton at Matthew.Dalton@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8