Brussels (Brussels Morning) – The European Commission approves a €300 million fund for Electricité de France’s Nuward subsidiary to develop small modular nuclear reactors (SMRs), supporting the EU’s green energy goals and strategic industrial strategy.
The European Commission has agreed, under EU State aid regulations, a €300 million French measure to fund Electricité de France’s (EDF) subsidiary Nuward in exploring and developing small modular nuclear reactors (‘SMRs’). The action will contribute to the attainment of the strategic purposes of the European industrial strategy and the European Green Deal.
According to the European Commission, France announced to the Commission its plan to give €300 million to Nuward to back its research and development (R&D’) scheme on SMR technology.
Does France’s Investment Accelerate SMR Development in Europe?
The project seeks to develop processes for the design and structure of SMRs based on a simple and modular design and with an energy output equivalent to or less than 300 MWe. The front-end layout is the third phase of the overall Nuward project, which includes five distinct phases. In December 2022, the Commission already consented to a €50 million French measure to back the second phase of the project, aimed at developing new knowledge for the design and construction of SMRs.
Is EU Funding Pivotal for Nuward’s SMR Success?
Under the measure, the support will take the form of a direct contribution of up to €300 million that will cover the R&D project until early 2027. The measure will sustain Nuward in sizing the modules and features of the SMRs and validating their integration in the SMRs utilising numerical simulators and laboratory tests. Nuward will also carry out industrialisation investigations relating to the modular design and mass production of SMRs.
Will Nuward’s Research Transform Europe’s Nuclear Landscape?
Finally, the action will also support Nuward in the preparation of the mandated safety demonstrations for the permission of the project by the national nuclear safety authorities.
The EU Commission evaluated the measure under EU State aid rules, in certain articles of the Treaty on the Functioning of the European Union (‘TFEU’), which allows Member States to support the development of specific economic activities subject to specific conditions, and the 2022 Framework for State aid for research and development and innovation (‘RDI Framework’).
Is EU’s Investment in SMRs a Game-Changer for Energy?
The European Commission found that: The measure enables the development of economic activity, in certain R&D activities for the development of SMR technology; The aid has an ‘incentive effect’, as the heir would not carry out the investments in R&D actions for SMRs without the public support; The measure is necessary and proper to promote the relevant R&D actions. In addition, it is proportional, as the level of the aid corresponds to the practical financing needs; The measure has sufficient protection to ensure that undue distortions of competition are restricted. In particular, the supported R&D activities will concentrate on technologies that are not instantly marketable, occurring at a very advanced stage, and ready for industrial deployment only in the long term; The aid brings about favourable effects that outweigh any potential warping of competition and trade in the EU.
Margrethe Vestager, Executive Vice-President in charge of competition policy stated “We approved today a €300 million measure which enables France to support Nuward’s research and development project on innovative small modular reactors. This project will contribute to the decarbonisation of energy systems and the EU’s open strategic autonomy while limiting possible distortions of competition.”
