French officials propose an interest-free loan to EDF for constructing six nuclear reactors, supporting France's energy transition and decarbonization goals amidst political and economic challenges. Learn more about Europe's nuclear revival.

By Warrence Oghenevwegba 

Published on: November 27, 8:50 P.M 

French officials are drawing up plans to provide an interest-free loan to state-owned power utility EDF to finance a significant portion of the construction of six new nuclear reactors, two people familiar with the matter said.

The financing would clear a major hurdle for one of the country's biggest public projects in years.

The plans are similar to financing agreed recently for a single reactor in the Czech Republic, and although the size of the loan is not yet known, it shows the growing need for state support in financing new nuclear projects in Europe.

The plans also include a long-term guaranteed price for the power generated, known as a contract for difference (CfD), said the people, who declined to be identified because they are not authorised to speak with media.

The Ministry of Finance and EDF declined to comment.

The discussions on financing the projects that could cost well over 50 billion euros ($52.60 billion) come as the French government faces a potential no-confidence vote over a proposed budget that contains measures to cut spending and raise taxes to contain the country's soaring debt.