OR France holds a very important role for proficiency energy in Europe and the latest political developments in the country worry experts who fear an energy “domino”.
France has traditionally been the battery (in the field of energy) of the Old Continent, as its huge nuclear fleet provides stable and uninterrupted electrical power not only for itself, but also for its neighbors.
In the past there were at least two periods of time when this role was reversed. The first was in 2017, when French exports temporarily fell significantly, causing a wave of price appreciation in most European countries, including Greece. July of that year was the first time the Greek market experienced a wholesale price close to 100 euros per megawatt hour.
Accordingly, in the energy crisis of 2022 things got significantly worse because many of France’s nuclear plants were shut down for emergency maintenance.
Now, the change of baton after the resignation of Prime Minister Barnier may trigger developments that will worsen the availability of French electricity exports.
Barnier’s government had pledged to offer interest-free loans to state electricity company EDF to help it cope with its financial difficulties, keep its power supply stable and build new nuclear plants. Accordingly, Barnier intended to tax electricity suppliers to protect EDF’s viability.
In addition, France’s new energy targets, which were supposed to be detailed this month after significant delays, are also up in the air.
Now all of the above is being called into question and everyone’s eyes are on what plan the new government will present. Naturally, these are developments that will affect the European continent on a long-term basis.