popular articles

France: €200 billion needed to modernize electrical grids, says the Court of Audit

The Court of Audit reveals €200 billion in investment needs to modernize French electrical grids by 2040, urging a balance between shareholder and consumer financial efforts.

Please share:

The Court of Audit highlights in a report published on Wednesday the financial challenges linked to the modernization of French electrical grids. According to the institution, grid operators Réseau de Transport d’Électricité (RTE) and Enedis will need to mobilize nearly €200 billion to meet energy transition objectives by 2040.

A complex arbitration

These massive investments are essential to achieving decarbonization goals. They aim to connect renewable energy infrastructures, such as wind farms, and to develop the necessary networks for electric vehicle charging.

However, the Court stresses the importance of a fair arbitration between the dividends distributed to shareholders of grid operators and increases in the tariffs for using electricity networks (TURPE). A rise in this tariff, estimated at around €10 per megawatt-hour (MWh) by 2030, could weigh heavily on consumers.

Reducing dividends as a priority

The report suggests that reducing dividends should be the first step to limit the impact of investments on household bills. This recommendation is based on the notion that operators, benefiting from a low level of risk, can adjust their distribution policy to better support financing efforts.

For the Court, the goal is to find a balance that ensures the financial viability of infrastructures without excessively burdening households, while the average electricity consumption in France stands at 2.223 MWh per inhabitant per year.

Strategic challenges for the future

This report highlights the challenges the energy sector faces in the context of the ecological transition. It also underscores the importance of strategic and political decisions to fairly distribute efforts among public actors, private entities, and users.

The Court of Audit’s recommendations, while oriented toward a pragmatic approach, pave the way for debates on funding priorities in a context where climate goals require record-breaking investments.

Register free of charge for uninterrupted access.

Publicite

Recently published in

A report from the Public Policy Forum calls for accelerating over 500 energy, critical minerals and infrastructure projects to generate CAD1 100bn in Canadian GDP growth.
Quebec opens public consultation on draft regulations to revise gas standards and frame the integration of hydrogen, with feedback expected by 27 June.
Quebec opens public consultation on draft regulations to revise gas standards and frame the integration of hydrogen, with feedback expected by 27 June.
The Danish government is assessing the possibility of authorising new nuclear technologies, marking a major regulatory shift in energy policy after four decades of prohibition.
The Danish government is assessing the possibility of authorising new nuclear technologies, marking a major regulatory shift in energy policy after four decades of prohibition.
The Spanish government confirmed no signs of cyberattack were identified after the 28 April blackout that affected much of the Iberian Peninsula.
The Spanish government confirmed no signs of cyberattack were identified after the 28 April blackout that affected much of the Iberian Peninsula.
South African authorities are advocating for an approach that integrates economic development and environmental protection, highlighting global imbalances in climate responsibility.
The European Commission is considering changing environmental laws to accelerate the granting of permits for renewable energy projects across the European Union.
The European Commission is considering changing environmental laws to accelerate the granting of permits for renewable energy projects across the European Union.
Spain’s competition authority has launched its own investigation into the April 28 power outage, joining ongoing inquiries into an incident that disrupted 60% of the country's electricity consumption.
Spain’s competition authority has launched its own investigation into the April 28 power outage, joining ongoing inquiries into an incident that disrupted 60% of the country's electricity consumption.
German regulator BNetzA has launched a consultation on a major grid tariff reform that could require electricity producers to pay access fees, thus altering the current funding structure.
German regulator BNetzA has launched a consultation on a major grid tariff reform that could require electricity producers to pay access fees, thus altering the current funding structure.
The U.S. Department of Energy will purchase three litres of helium-3 from Interlune by 2029, marking the first public contract involving a natural resource extracted from the lunar surface.
Iran will limit daily power cuts to two hours for households starting May 10, aiming to ease pressure on the national electricity grid as temperatures climb.
Iran will limit daily power cuts to two hours for households starting May 10, aiming to ease pressure on the national electricity grid as temperatures climb.
The French government has entrusted Bernard Fontana with the leadership of EDF, relying on his industrial background to manage the end of the Arenh and revive the nuclear programme.
The French government has entrusted Bernard Fontana with the leadership of EDF, relying on his industrial background to manage the end of the Arenh and revive the nuclear programme.
Germany’s new Economy Minister, Katherina Reiche, plans 20 gigawatts of gas-fired plants to address the limits of renewable energy.
Germany’s new Economy Minister, Katherina Reiche, plans 20 gigawatts of gas-fired plants to address the limits of renewable energy.
The Spanish Prime Minister has asked for more time to determine the causes of an unprecedented outage on April 28 that cut 15 gigawatts of electricity from the peninsula’s grid.
Prime Minister François Bayrou confirmed that France’s 2025–2035 energy roadmap remains under discussion and will only be finalised after parliamentary debates starting on 16 June.
Prime Minister François Bayrou confirmed that France’s 2025–2035 energy roadmap remains under discussion and will only be finalised after parliamentary debates starting on 16 June.
The re-election of the Albanese government reassures energy stakeholders calling for regulatory adjustments to accelerate projects and secure long-term investment.
The re-election of the Albanese government reassures energy stakeholders calling for regulatory adjustments to accelerate projects and secure long-term investment.
SOGARA is launching a two-phase modernisation programme to increase the country's energy autonomy by 2030, with financing primarily from external sources.
SOGARA is launching a two-phase modernisation programme to increase the country's energy autonomy by 2030, with financing primarily from external sources.
Suriname has launched a pre-distribution programme of its future oil revenues, offering a $750 bonus to more than 570,000 citizens well before the start of offshore production scheduled for 2028.
One week after the massive blackout, Spain and Portugal continue their investigations with no technical conclusion, while Madrid calls on France to accelerate cross-border interconnection projects.
One week after the massive blackout, Spain and Portugal continue their investigations with no technical conclusion, while Madrid calls on France to accelerate cross-border interconnection projects.
Australia’s opposition leader unveils a seven-reactor plan, challenging current energy policy days before federal elections and reviving a decades-old debate.
Australia’s opposition leader unveils a seven-reactor plan, challenging current energy policy days before federal elections and reviving a decades-old debate.
The French Energy Regulatory Commission proposes reducing certain renewable generation targets due to a slower-than-expected rise in electricity demand.
The French Energy Regulatory Commission proposes reducing certain renewable generation targets due to a slower-than-expected rise in electricity demand.
Two days after a blackout that disrupted 60% of national demand, the growing share of renewables in Spain’s grid faces strong political and industrial criticism.
The NGO Reclaim Finance ranked BPCE last among twenty major European banks for its lack of commitment to the transition towards carbon neutrality, according to a study published on Tuesday.
The NGO Reclaim Finance ranked BPCE last among twenty major European banks for its lack of commitment to the transition towards carbon neutrality, according to a study published on Tuesday.
François Bayrou plans to postpone the publication of the French energy decree until the end of the summer after parliamentary review, under pressure from the Rassemblement National and part of the right.
François Bayrou plans to postpone the publication of the French energy decree until the end of the summer after parliamentary review, under pressure from the Rassemblement National and part of the right.
The European Investment Bank signs a loan of over €525mn with PGE to develop solar projects and modernise a power plant in Poland.
The European Investment Bank signs a loan of over €525mn with PGE to develop solar projects and modernise a power plant in Poland.

Advertising