EdF at the mercy of consumption peaks

Electricite de France (EdF) is no longer the 'power tank' of Europe. The number one European power company, like other European power operators, will have to invest in France in terms of peak and half-base power generation means in order to keep its long-term export contracts. The power generation over-capacities that France had in the past, thanks to its over-dimensioned nuclear program, today have reached their limits. RTE, the French manager of energy transportation networks, estimates to 3000 MW the additional capacity that EdF will need between 2008 and 2010, and to 1000 additional MW per year by 2011. The first solution is to re-launched the hydraulic investments and to modernize the park of old fossil fuel power plants. The second solution is to adjust the power tariffs to the prices of the market which means a tariff rise of about 25%. (J.S.)