PARIS, Jan 25 (Reuters) - French forward power prices have fallen sharply in recent months, raising fears that a continued drop could push nuclear plants run by debt-laden French power giant EDF into the red.

The baseload power price for 2026, the first year a new agreement between EDF and the French government comes into effect, has fallen about 30 euros in three months to around 71 euros per megawatt hour (MWh), just over the reference price set in the deal.

The reference level was set above the French energy regulator's calculation of EDF's operating cost of about 60 euros/MWh.

This means a further decline in prices could make EDF's nuclear operations loss-making and hit its ability to invest.

"If prices continue to fall, EDF's ability to finance major investments may come into question," said Clement Bouilloux, a senior energy analyst at EnAppSys.

EDF did not respond to a request for comment.

The price drop is being driven by low demand, rising renewable energy supply, and a continued slide in European gas costs, analysts said.

"No one is going to rush to buy three to five year contracts at 90 euros which are more expensive than the market... it means that EDF will be forced to sell spot, or at prices lower than what they expected," an industry source told Reuters.

"The government bet that prices would not fall in the coming years. If prices drop significantly, EDF will be in a very difficult situation since they did not negotiate a floor."

"And at that point, how does EDF finance itself? I think the situation will be complicated," the source added, speaking on condition of anonymity due to the sensitivity of the matter.

EDF's operating costs soared in 2022 during Europe's energy crisis after a swathe of its nuclear plants went offline with stress corrosion issues, causing the company to have to buy back power it had previously sold at an inflated cost.

"If this decline is temporary, the impact will be small. But remember the 2015-2018 period: during these years, the situation was financially very complicated for EDF," said Nicolas Goldberg, associate director at Colombus Consulting, adding the current decline came faster than expected.

French calendar prices fell to around 27 euros/MWh through the 2015 to 2018 period as EDF had to sell electricity at a loss, hitting its profitability.

(Reporting by Forrest Crellin and Benjamin Mallet Editing by Mark Potter)