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Big changes are on the horizon in France, especially for industry and economic operators. According to JP Morgan analysts, a downward trend in electricity prices is becoming evident. EDF forecasts suggest positive prospects for consumers, but also challenges for the company itself. Let’s take a look at these important developments for the French economy.
Announcement of electricity tariff cuts
What does it mean to be rich in France? Find the answer in this article. If not, from the beginning of 2024, electricity prices will be The long-awaited decline.
EDF, a major player in the French energy industry, One Profits increased by 21% Sales in the first half of the year reached 7 billion euros. This excellent result was mainly due to Increase in nuclear and hydroelectric power generation.
EDF CEO Luc LeMond said:A sharp decline in prices is expected towards the end of the decade, followed by a stabilisation.” “.
Bringing smiles back to consumers, EDF faces economic challengesIndeed, sustained price declines could impact the company’s future performance, despite planned investments in the energy transition.
Economy: Investment impacts of the energy transition
At the same time, the French government, through its Minister of Economy, Bruno Le Maire, Regulated electricity rates to be reduced by 10-15% in February 2025Despite fears of bankruptcy for the whole of France.
This decision: Record increase of over 30% since 2021Despite the tariff shield, EDF is on track to post a net profit of €10 billion in 2023 and is using this momentum to make important investments for the energy transition.
The company: Strengthening nuclear and hydroelectric capabilitiesWhile integrating Increase in renewable energy.
France’s nuclear power generation has already increased by 19.4 terawatt-hours (TWh) in the first half of 2024, reaching 177.4 TWh, and forecasts for 2025-2026 are promising, in the range of 335-365 TWh.
- Increase in nuclear power generation: +19.4 TWh in the first half of 2024.
- Production target for 2024: 315-345 TWh
- Production target for 2025-2026: 335-365 TWh.
As electricity prices see falling and investment in the energy transition increases, France could see a major economic boost thanks to the 2024 Paris Olympics.
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Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.