(Bloomberg) -- Electricite de France SA Chief Executive Officer Luc Remont urged French policymakers to review subsidies for solar power, saying the measures add too much generation to the grid and undermine the nuclear giant’s finances as electricity demand remains subdued.
“In a period of rather weak demand and abundant supply, there are types of investments that are more or less useful and more or less expensive for the system,” Remont said on an earnings call Friday. “This discussion must take place.”
State-owned EDF has been increasingly forced to reduce nuclear output and to buy soaring volumes of subsidized solar power that depress spot electricity prices, the CEO added. “It’s time to challenge” plans for the addition of photovoltaic power that also contribute to a rise in the cost of the power system, he said.
The comments will fuel controversy among nuclear and renewable opponents as EDF seeks financial backing from the government for the construction of six new atomic plants, which may cost €67.4 billion. However, the lack of a clear parliamentary majority that emerged from legislative elections raises questions about France’s future energy policy, including support for nuclear projects in the near term.
Incentives that would shift power consumption toward peak solar-production hours would be welcome, while any plans to increase taxes on electricity production would undermine investment in the green transition, the EDF CEO said. He also urged policymakers to avoid wavering in support for electrification of demand, and pointed to a recent drop in heat pump sales partly due to a change in regulations.
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