France and nuclear energy: reflections on some choices

In no other country is the relative importance of nuclear energy in the energy supply system larger than in France. This development, both recent and rapid, represents the French response to the tensions in the international energy markets over the last decade. The authorities' concern to regain a large measure of energy independence has led them to determined action to promote the use of electricity - nationally produced - by consumers. To control production costs, and make investment in nuclear technology profitable, an extension of the market was needed, i.e. it was necessary to produce and sell a lot of nuclear electricity. Beyond the passion to which it gives rise, this choice deserves a full analysis. Although the nuclear programme is an undisputed technical success, it is now seen to be suffering from some consequences of its rapid implementation. Because of some structural factors, demand for electricity did not grow as fast as supply, despite various incentives: inertia of consumers' habits, but also the inherent characteristics of each kind of energy whose efficiency depends upon the technology used and the nature of the needs to be met. The French commitment towards nuclear energy is largely irreversible, but it does not follow that there is no room for manoeuvre. To illuminate the choices of energy policy, at least four fundamental questions have to be answered, even if only hypothetically. This document was initially published in: 'Observations et diagnostics economiques: revue de l'OFCE', no.19, 1987. pp. 189-227