Livret A and Nuclear Power: A Choice Questioning Technological Neutrality and the Future of Renewable Energies. Decryption.

By Alain Grandjean, Lucie Pinson, Vincent Jacques le Seigneur, and Stéphane His (*)

The recent decision to open Livret A financing to new nuclear power marks a significant turning point in French energy policy. It is part of the government’s direction to mobilize French savings for long-term investments, seen as meeting energy sovereignty and decarbonization objectives. However, focusing on a single technology cannot constitute a coherent energy policy. Why reserve this tool for just one technology, when the energy transition inherently relies on complementary solutions?

For years, public authorities have upheld the principle of technological neutrality. This principle, at the core of the European energy and climate policy driven by France, involves not favoring a specific technology but directing investments towards the most effective solutions to achieve set objectives: decarbonization, supply security, cost control.

By de facto restricting Livret A access to only nuclear power, France deviates from this principle. The energy transition must be based on a variety of solutions. The deployment of renewable energies, alongside electrification of uses, development of networks, and storage capacities, is a significant part of it. The government acknowledges this in its strategy, even though nuclear power retains a central role.

As current events remind us of the urgency to reduce our dependence on fossil fuels in a structurally volatile market, renewable energies appear as the fastest solutions to cut energy bills and limit exposure to gas prices, which continue to influence electricity prices in Europe.

In France, the high development costs of renewable energies remain abnormal due to specific constraints, including administrative and land-related constraints, significant initial capital requirements, and a disparity with distorted fossil fuel energies. This paradox arises as these technologies are competitive internationally but face hurdles in deployment. In this context, accessing financing becomes a crucial issue. Addressing this requires activating multiple complementary levers.

Mobilizing Livret A for renewable energies can be part of the solution, but it’s not sufficient. Other instruments should be fully utilized: raising public deployment targets to provide visibility to actors, redirecting more bank financing towards these technologies by reallocating funds still supporting new fossil energy projects, or engaging central banks with favorable financing conditions for low-carbon investments.

Strengthening financing facilities for renewable energies, network infrastructure, storage, and electrification would accelerate the necessary investments for decarbonizing the economy. It would also maximize the impact of French savings by supporting an effective and economically sustainable energy transition.

As France must accelerate its energy transformation, it is imperative not to hinder the deployment of identified essential solutions. On the contrary, creating optimal deployment conditions is urgent. Livret A could thus be a lever for a more coherent energy policy aligned with the real needs of the transition.

(*) Alain Grandjean, Economist; Lucie Pinson, Founder and Director of Reclaim Finance NGO; Vincent Jacques le Seigneur, President of Observ’ER; Stéphane His, President of Energies Renouvelables pour tous association.