French renewable energy developers are scrambling for state contracts ahead of the election, fearing Le Pen's anti-green policies could freeze new projects.
Renewable developers race for contracts
Renewable energy developers in France are rushing to secure state-backed contracts before the presidential election, driven by recent polls showing Marine Le Pen leading in the race. Le Pen has pledged to halt new wind and solar projects and has criticized the billions of euros France spends on renewable energy subsidies.Le Pen’s stance on renewable energy
Le Pen’s campaign has focused on ending new wind and solar projects, which has caused uncertainty among developers. Fearing that new projects could be frozen if she wins, they are competing aggressively for contracts before the election deadline.Competitive bidding for solar projects
In France, the government offers contracts for renewable projects, and developers compete by submitting bids. The last large solar park auction saw nearly six times more bids than available slots, leading to a significant drop in prices. Selected developers, including EDF and Reden Solar, committed to selling electricity at prices 23% lower than the previous year.Lower prices and sector concerns
The price reductions have added to the sector’s stagnation, which is already cutting jobs and reducing costs after years of rapid growth. Thomas de Moussac of Mexens SAS, one of the contract winners, expressed concern over the pressure on development and construction margins.Le Pen’s strategy and criticism of energy policy
Inspired by Donald Trump, Le Pen has long criticized renewable energy subsidies and Emmanuel Macron’s energy policies, arguing they have impoverished the French and harmed the economy. Under Macron’s presidency, French solar capacity expanded rapidly after the 2022 energy crisis, but the current context has changed.Shift in energy goals and market prices
Electricity demand has remained moderate, renewable production has increased, and EDF reactors have resumed service, prompting the government to lower its green energy goals to avoid overproduction. This shift is affecting the entire sector, with projects now potentially generating revenue for the state.Auction prices and government support
Large solar projects in the last tender obtained contracts at an average price of 61 euros per megawatt-hour, similar to European energy exchange prices for 2029 and 2030. The government supports developers when market prices fall below this level, while companies pay a contribution when prices rise above it.Government response and future tenders
Energy Minister Maud Bregeon noted that the drop in auction prices showed the sector becoming more competitive. She mentioned that more renewable energy tenders are planned, and results from an upcoming land-based wind power tender are "encouraging."
