As a global leader in carbon neutrality, Europe bases its development model on energy transition and has developed decarbonised technological solutions in many areas. However, this political lead has not always translated into industrial competitiveness in the global market, despite efforts to innovate. An industrial decline has been observed, leaving Europe in a weak position in international markets.
The European Union’s objective of achieving carbon neutrality by 2050 requires a profound overhaul of the energy system, which will mobilize a range of technologies. This transition will bring technical, economic, and social challenges.
Recent geopolitical upheavals, such as trade tensions and supply chain volatility, have increased uncertainty in the global geo-economic landscape. Faced with these challenges, decision-makers are seeking to broaden their strategic vision. The EU has recognized the need for strategic autonomy in a fragmented world, where access to certain resources and equipment is becoming more difficult and could be used as a geopolitical weapon.
Gaining control over European supply chains to ensure stable access to energy and critical resources in a context of global competition has now become a political priority. This includes establishing production capacities for low-carbon technologies within Europe. All of these objectives can only be met by combining a wide range of policy measures, striking a balance between energy, environmental and industrial policies. However, some of these measures could come into conflict with the policies implemented over the last few decades to build the European energy market, as well as those underpinning trade and investment relations.
In this context, this thesis proposes a theoretical framework for analysing the systemic conditions for the development of the European battery industry, integrating the dimensions of public policy, industrial sovereignty and geo-economic issues. It will be carried out within the Energy Markets Regulation and Organization (ROME) research unit of the CEA's Institute for Research and Studies in Energy Economics (I-Tésé), in academic partnership with the University of Paris Dauphine-PSL.

The subject deals with the role of nuclear power in a low-carbon energy system, helping to lower the costs of the electricity system in the face of the penetration of timed renewable energies (wind, solar). Despite its systemic benefits, nuclear power is struggling to generate sufficient revenues in today's electricity markets, due to price volatility and declining load factors. Models show that very high prices during periods of load shedding could compensate for these losses, but such hypotheses remain to be proven. What's more, any construction contingencies (delays, extra costs) accentuate the risks for investors. To deal with this, suitable economic instruments are proposed: contracts for difference (CfD), capacity mechanisms, and regulated asset bases (RAB). The thesis aims to assess the effectiveness of these instruments through several steps: (1) long-term modeling of a low-carbon interconnected power system, (2) evaluation of the profitability of nuclear power in an “Energy only” market, and (3) modeling integrating these regulatory mechanisms to test their ability to cover construction and operating risks. Finally, tools such as real options or futures markets will be explored to address the uncertainties associated with the mass deployment of new nuclear reactors, from a national energy policy perspective.