This is an important economic signal, but above all a very strong political message. On the occasion of British Prime Minister Rishi Sunak’s visit to Paris this Friday, March 10, France and Great Britain announced the signing of two agreements in the energy field.
They are presented as major and the first of their kind between the two countries. The latter, however, already have very strong links in terms of energy. EDF is the leading electrician in Great Britain, where it has 15 nuclear reactors, including 2 EPRs under construction at Hinkley Point, which is currently the largest industrial site in Europe, and two others planned at Sizewell.
« We have made very similar choices, with nuclear power, the massive deployment of renewables and the development of low-carbon hydrogen “, we underline the office of the Minister of Energy Transition, Agnès Pannier-Runacher.
Common position on environmental issues
The first text is about a ” global energy partnership “. Behind this catch-all name, it is a question of developing exchanges of skills and cooperation, in the field of nuclear power, offshore wind power (a sector where Great Britain is very advanced), but also the capture of CO2 and the development of electrical interconnections. Discussions are underway on a project for a new link.
The second text is a partnership for climate and environmental diplomacy “. The two countries are committed to bilateral exchanges before each international meeting and to having a common position at COP 28, which is being held in Dubai at the end of the year.
London rather than Berlin
But more than the content of the agreements, it is the way of putting them forward that matters, especially in the current context. ” There is no text as dense, as rich and such close cooperation, which has been signed with another country… We will consult each other more often, we will work better together “, we argue in the cabinet of Agnès Pannier-Runacher.
The contrast is striking with the current tensions between France and Germany. In Paris, the anti-nuclear obsession of the Germans is beginning to seriously annoy. In 2021, there was their opposition to the introduction of the civil atom in the European taxonomy, which ultimately was not won. There is now their hostility to nuclear power being used to produce low-carbon hydrogen. At the beginning of February, Agnès Pannier-Runacher publicly evoked a ” climaticidal and absurd position ».
Between the two countries, the tension is such on this subject that several European texts are today blocked, or not making much progress, such as the new directive on renewable energies or the reform of the electricity market.
At the end of February, France even dared to lead a group of eleven EU countries, which chose to agree to “support new projects” nuclear, develop innovative technology »and share their experience in the operation of existing power plants.
UK nuclear bill not paid
The display of this reinforced cooperation in energy also makes it possible not to speak of the financing of British nuclear power. Because the bill for the Hinkley Point site has seriously slipped to reach today 37 billion euros, almost double what was originally planned, in 2016. And the Chinese CGN, which is no longer the welcome to the country but still owns 33.5% of the shares, announced last summer that it would no longer participate in the additional costs.
EDF (that is to say the French State which has just launched the nationalization of the company) will therefore have to return to the pot, unless it negotiates with the British government so that it takes its share.
Not easy, especially since negotiations are already underway on the financing of future Sizewell EPRs. In November, London took over CGN’s 20% stake in the project. For its part, EDF will not have more than 20%. We must therefore find new investors and find a method of financing. This is the subject of difficult discussions between Paris and London. The two governments want to reach a solution by the summer.