By Mauro Orru 
 

The European Commission said Tuesday that it has authorized France to compensate Electricite de France SA for the closure of a nuclear plant in Fessenheim.

The decision comes years after France opted to cap nuclear power generation capacity in a bid to diversify its energy sources, prompting state-controlled utility company EDF to definitively shut down two reactors at Fessenheim in 2020.

In 2019, the French government and EDF signed a protocol agreement for the state to compensate the company, of which 370.2 million euros was paid ($441.8 million) in December 2020.

However, the agreement also includes variable compensation to be paid at a later stage, according to the EU.

"The commission concluded that the positive effects of the measure outweigh potential distortions of competition and trade. On this basis, the commission has authorized the measure under EU state aid rules," the EU said in a statement.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

March 23, 2021 10:35 ET (14:35 GMT)

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