France: The Constitutional Council Rejects Adjustments to EDF Contracts

The Constitutional Council censored a retroactive measure aimed at modifying contracts between EDF and renewable energy producers, citing a disproportionate infringement on contractual rights.

Share:

Gain full professional access to energynews.pro from 4.90€/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90€/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 €/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99€/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 €/year from the second year.

The decision of the Constitutional Council to censor provisions in the 2024 Finance Act marks a pivotal moment in the regulation of remuneration contracts linking EDF to renewable energy producers. This initiative sought to address the “windfall effects” generated by the energy price surge in 2022 and 2023.

These contracts, introduced in 2015 to support renewable energy production, are based on a compensation mechanism. When a producer sells at a price below a reference tariff, EDF pays a premium to bridge the gap. Conversely, if market prices exceed this threshold, producers reimburse EDF with a “negative premium.”

An Excessive Measure

The legislator, by retroactively modifying these 20-year contracts, aimed to recover part of the extraordinary profits made by producers during the energy crisis. However, the Constitutional Council deemed this intervention excessively harmful to contractual commitments.

While acknowledging the general interest behind these adjustments, the decision emphasized that such modifications could have been limited to the extraordinary profits tied to the price crisis. By extending these corrections to all contracts, the contested provisions disrupted the initial economic balance of these agreements, crucial for investors in the energy sector.

A Transitional Framework Until 2025

To prevent immediate litigation and regulatory instability, the Council postponed the repeal of the provisions to December 31, 2025. This delay allows the legislator to propose a constitutionally compliant solution while maintaining stability in the market.

In the meantime, courts must suspend any decisions related to these provisions until a new regulation is implemented or until the end of 2025. This approach aims to protect the investment framework while offering a balanced response to market crises.

The federal government launches a CAD3mn call for proposals to fund Indigenous participation in energy and infrastructure projects related to critical minerals.
Opportunities are emerging for African countries to move from extraction to industrial manufacturing in energy technology value chains, as the 2025 G20 discussions highlight these issues.
According to the International Energy Agency (IEA), global renewable power capacity could more than double by 2030, driven by the rise of solar photovoltaics despite supply chain pressures and evolving policy frameworks.
Algeria plans to allocate $60 billion to energy projects by 2029, primarily targeting upstream oil and gas, while developing petrochemicals, renewables and unconventional resources.
China set a record for clean technology exports in August, driven by surging sales of electric vehicles and batteries, with more than half of the growth coming from non-OECD markets.
A night-time attack on Belgorod’s power grid left thousands without electricity, according to Russian local authorities, despite partial service restoration the following morning.
The French Academy of Sciences calls for a global ban on solar radiation modification, citing major risks to climate stability and the world economy.
The halt of US federal services disrupts the entire decision-making chain for energy and mining projects, with growing risks of administrative delays and missing critical data.
Facing a potential federal government shutdown, multiple US energy agencies are preparing to suspend services and furlough thousands of employees.
A report reveals the economic impact of renewable energy losses in Chile, indicating that a 1% drop in curtailments could generate $15mn in annual savings.
Faced with growing threats to its infrastructure, Denmark raises its energy alert level in response to a series of unidentified drone flyovers and ongoing geopolitical tensions.
The Prime Minister dismissed rumours of a moratorium on renewables, as the upcoming energy roadmap triggers tensions within the sector.
Kuwait plans to develop 14.05 GW of new power capacity by 2031 to meet growing demand and reduce scheduled outages, driven by extreme temperatures and maintenance delays.
The partnership with the World Bank-funded Pro Energia+ programme aims to expand electricity access in Mozambique by targeting rural communities through a results-based financing mechanism.
The European Commission strengthens ACER’s funding through a new fee structure applied to reporting entities, aimed at supporting increased surveillance of wholesale energy market transactions.
France’s Court of Auditors is urging clarity on EDF’s financing structure, as the public utility confronts a €460bn investment programme through 2040 to support its new nuclear reactor rollout.
The U.S. Department of Energy will return more than $13bn in unspent funds originally allocated to climate initiatives, in line with the Trump administration’s new budget policy.
Under pressure from Washington, the International Energy Agency reintroduces a pro-fossil scenario in its report, marking a shift in its direction amid rising tensions with the Trump administration.
Southeast Asia, facing rapid electricity consumption growth, could tap up to 20 terawatts of solar and wind potential to strengthen energy security.
The President of the Energy Regulatory Commission was elected to the presidency of the Board of Regulators of the Agency for the Cooperation of Energy Regulators for a two-and-a-half-year term.