Declaration of a leap forward for nuclear power, including extended reactor life and increased output.
Expanding decarbonized power production to meet growing electricity demand
On February 12th, the French Energy Roadmap (Feuille de route energetique) for the next ten years was published by government decree. Officially known as the "Energy Multiannual Programme" (PPE, Programmation Pluriannuelle de l'Energie), the roadmap is the highest-level medium-term planning document for French energy policy, based on the Energy Transition Act. It includes plans for carbon neutrality, energy security, and expansion of renewable energy by 2050. It is updated every five years, with ten-year plans (typically five years plus five years) announced.
The roadmap announced this time is the Third Multi-Year Plan for Energy (PPE), which covers the period from 2026 to 2035 and follows the Second Multi-Year Plan (2019-2028).
The Third Energy Plan sets a clear direction: to significantly expand decarbonized energy, particularly decarbonized electricity production (targeting 650-693 TWh by 2035, up from 544 TWh in 2025), while simultaneously reducing fossil fuel consumption (approximately 330 TWh in 2035, down from 900 TWh in 2023). This shifts the current situation, where fossil fuels account for 60% of total energy consumption, and aims to increase the share of decarbonized energy to 60% by 2030 and 70% by 2035, the French government announced.
France's Third Multi-Year Energy Plan (PPE3)—A Long-Term Plan to Decarbonize the French Economy
[Source: French government]
The Third Energy Plan outlines a path based on a diversified energy mix comprised of diverse energy sources. This includes: ① diverse power generation sources such as nuclear, hydropower, offshore and onshore wind, and solar power; ② expanded electrification of energy-using sectors; and ③ development of low-carbon energy sources (heat networks, biomethane, biofuels, hydrogen) to replace fossil fuels (oil and gas). By 2030, the share of electricity will increase from the current 27% to 34%, with the remaining share of decarbonized energy being achieved through the expansion of renewable heat networks (bio, geothermal, etc.).
Key highlights by industry are as follows:
Nuclear Power Reinvention, Pro-Nuclear Declaration
The French government has declared a "rebirth of nuclear energy" for nuclear power, which generates two-thirds of France's electricity. In an official statement, the French government stated that this third multi-year energy plan marks a significant turning point. Unlike the second plan, which had envisaged the closure of 14 reactors, the third plan formalizes the rebirth of nuclear energy and reverses the closure policy, specifying long-term investment guarantees. The goal is to extend the life of reactors to 50 or 60 years, provided all safety requirements are met, and to expand the usable output (installation capacity) of existing reactors.
The nuclear power plant production target for 2030-2035 was raised from the previous 360 TWh to 380-420 TWh, and it was also announced that the goal is to confirm the start of construction of six EPR2 reactors in line with the direction presented by President Macron in his Belfort speech in February 2022, and to prepare for a decision on whether to build eight additional reactors in 2026.
Additionally, it announced that it would support the development of small modular reactors (SMRs) and innovative small reactors, with the goal of first operation in the early 2030s.
Other aspects of the nuclear power plant revitalization plan include modernizing and renewing downstream nuclear fuel cycle industrial facilities, continuing research on the closure of the nuclear fuel cycle (fuel manufacturing plants, fast neutron reactors, and spent nuclear fuel reprocessing plants), and establishing a strategic roadmap.
Solar power generation speed adjustment
This multi-year energy plan prioritizes nuclear power while lowering solar targets. The government has proposed a target of 48 GW by 2030, down from the 54 GW previously proposed in the draft, and a target range of 55 to 80 GW by 2035. This represents an additional 17 GW over the next five years, and according to local daily Les Echos, the industry already has 10 GW of project backlog. This represents an average annual deployment rate of approximately 3.4 GW, which is expected to be lower than the 5 GW annual installation rate in 2024 and 2025. It is reported that this will be reflected in a reduction in the scale of public bidding for solar power plants in the future.
Nevertheless, the industry is relatively satisfied. Mr. R of solar company I told PV magazine France, "This decision is a relief for both the solar industry and its customers, as the situation has been virtually at a standstill for the past few months." He added, "The suspension of new CRE (Commission Regulatory Commission for Energy) tenders has delayed projects by real estate companies seeking to install solar panels on rooftops and parking lots of new buildings."
Onshore wind power targets reduced, offshore wind schedule delayed
The onshore wind energy production target was also reduced from the draft's 45 GW by 2035 target to 35-40 GW. Rezeco assessed this as a relatively less ambitious target for onshore wind power. Citing strong local opposition as a factor, the French government is expected to prioritize increasing output through the replacement of existing facilities over new installations.
For offshore wind power, the 2035 target was adjusted from the original 18 GW to 15 GW. The French government stated that this was "not a reduction, but a delay." Given that solar power relies almost entirely on Chinese-made panels, the goal for offshore wind power is to support French manufacturing plants for nacelles, blades, and offshore substations.
France currently boasts approximately 5000 jobs in the offshore wind industry and is home to three of the eleven major turbine component factories in Europe, making it a leading European leader in offshore wind equipment manufacturing. The French government has announced its commitment to building a complete industrial ecosystem for offshore wind and grid connectivity. Furthermore, additional tenders will be launched to launch new projects in all coastal regions.
Meanwhile, concerns are rising about future job losses due to lower targets for solar, onshore, and offshore wind energy. In interviews with Le Monde, employees of related companies also mentioned the possibility of "reduced investment and workforce restructuring in France."
<Job Creation Outlook by Energy Industry>
(Unit: people)
[Source: Official government announcement, Le Monde]
implication
Over the next decade, France's energy industry is expected to focus on nuclear power and meeting electricity demand. Above all, it is noteworthy that the French government has declared a "nuclear leap forward" by establishing policy directions that include extending the lifespan of nuclear power plants, increasing the output of existing facilities, confirming the construction of six EPR reactors and exploring the possibility of adding eight more, and supporting SMRs.
The French nuclear ecosystem remains a key pillar in Europe in terms of technological prowess and industrial foundation. Key companies such as Nuward, Calogena, Framatome, and Orano are seeking partners in areas such as component materials, high-temperature metals, 3D printing, and non-destructive testing (NDE). In particular, opportunities for mutual cooperation with Korea are expected in the area of fourth-generation nuclear power plants, including SMRs. Therefore, efforts should be made to forge partnerships by networking with key companies participating in government-funded projects.
The recently announced Third Multi-Year Energy Plan (PPE3) also aims to address rising electricity demand. This is because the transition to electric vehicles, the expansion of heat pumps, and industrial decarbonization are expected to drive increased electricity demand. Consequently, demand for power grid infrastructure is also expected to increase significantly, with the construction of new substations driving increased demand for transformers, switchgear, and protective equipment. However, companies seeking to expand into Europe and France should familiarize themselves with the local regulations governing such equipment before considering active market entry.