EPR2: France’s New Energy Flagship Could Cost €67.4 Billion for an Uncertain Outcome, According to the Court of Auditors

France is betting big on nuclear energy to secure its future power supply, but a new report from the Court of Auditors raises serious concerns about the feasibility and cost of its ambitious EPR2 reactor program. The project, meant to be the backbone of France’s nuclear revival, is already facing budget overruns and structural challenges that could jeopardize its success.

A Troubling Pattern: Budget Overruns and Delays

A 97-page report published on January 14, 2025, by the Court of Auditors highlights persistent financial and scheduling setbacks in France’s nuclear sector. The Flamanville 3 project serves as a cautionary tale: initially expected to cost €3.3 billion, the price tag has now soared to a staggering €23.7 billion.

Similar problems have plagued international EPR projects in Finland and the UK, where delays and budget overruns have become the norm rather than the exception. Even after the renationalization of EDF, France’s main energy provider, financial watchdogs warn that the industry’s structural risks remain deeply ingrained.

EPR2: A Project Struggling for Credibility

Unveiled by President Emmanuel Macron in 2022, the EPR2 program is supposed to spearhead France’s energy transition, with plans to build six new reactors and an option for eight more. However, according to the Court of Auditors, the program is still far from being operationally ready.

Some of the major hurdles include:

• Incomplete technical studies: The detailed design phase only began in July 2024, raising concerns about rushed implementation.
• Uncertain financing: EDF is still waiting for the government to clarify its financial commitments to the project.
• Questionable profitability: The expected return on investment remains murky, especially considering that Flamanville 3 has been deemed economically weak.

Soaring Costs: A Growing Concern

The estimated cost of constructing the first six EPR2 reactors has already surged by 30%, climbing from €51.7 billion to €67.4 billion. And that figure doesn’t even account for future inflation or unforeseen economic fluctuations.

The report also underlines that Flamanville 3’s total cost at completion will likely reach €23.7 billion, far exceeding initial estimates. This budget explosion stems from mounting provisions, financing costs, and inefficient risk management—a worrying trend that could affect the entire EPR2 program.

Recommendations: How to Prevent Another Nuclear Misstep

To avoid repeating past mistakes, the Court of Auditors suggests several key measures:

• Delay final investment decisions: EDF should not move forward until financing is secured and technical studies are fully completed.
• Limit international exposure: France should focus on its domestic nuclear agenda rather than stretching itself too thin with overseas projects.
• Clarify state involvement: The government must clearly define its financial and strategic role to prevent further mismanagement.

The Strategic Stakes of France’s Nuclear Ambitions

Despite its challenges, nuclear power remains central to France’s energy roadmap. The country aims to generate 42% of its electricity from nuclear sources by 2050, making EPR2 a cornerstone of its decarbonization strategy.

Beyond environmental goals, energy sovereignty is also a key factor. With geopolitical tensions rising, ensuring domestic control over nuclear technology is becoming a top priority. A prime example of this push for independence is the modernization of Arabelle turbines, now back under French ownership.

While nuclear energy may be essential to France’s future, the EPR2 program’s uncertain financial trajectory raises pressing questions about its long-term viability. Without strong planning and effective cost control, this flagship project could turn into yet another multi-billion-euro gamble.