Electricity: we must find “a way to be below 70 euros per MWh”, argues Patrick Pouyanné

The CEO of TotalÉnergies Patrick Pouyanné estimated Friday from the World Economic Forum in Davos that we must find “a way to be below 70 euros” per megawatt hour (MWh), regarding the agreement reached in November between EDF and the State on the price of nuclear electricity. “On electro-intensive, I think that indeed, if we have 70 euros, it will be complicated,” declared the manager, questioned by BFM Business on this agreement which should allow EDF to sell its electricity at a price stable average of 70 euros per MWh from 2026.

“We must find a way to be below 70 euros for electro-intensive industries,” he stressed, recalling that TotalÉnergies is both “a supplier (of electricity)” but also as a “refiner” (of oil), an electro-intensive, that is to say a large consumer of energy like the chemical, steel and glass industries. However, the manager believes that this is a price “correct enough to both make this energy transition and finance the new nuclear units” of EDF. “That’s all we’re trying to do at the same time, there are investments to be made, so I prefer to be in “finding a way to be together”,” he said.

Also read: How the State and EDF reached an agreement on a “limited” increase in electricity prices

The agreement reached between the State and EDF sets an average reference price of 70 euros for all nuclear production sold by EDF whereas in the current system, which ends from 2026, around a third of the The production of the reactors is sold at a bargain price of 42 euros per MWh. Announced in November, it sparked criticism among consumer associations and manufacturers worried about their competitiveness. This also gives the nuclear operator the possibility of signing long-term contracts with major energy consumers, which would, according to him, allow it to secure its colossal investments in its current and future reactors.

Repeating that he was ready to “sign 15, 20 year contracts” to “ultimately help finance” new nuclear reactors, Patrick Pouyanné said that nothing had “yet been signed” with EDF. “We made a call and Luc Rémont (CEO of EDF) told me that they would be ready one day to come and enter into a discussion with us and so I hope that she will commit,” said he said.