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.

Coal India issues tenders to develop 5 GW of renewable capacity, split between solar and wind, as part of its long-term energy strategy.
US utilities anticipate a rapid increase in high-intensity loads, targeting 147 GW of new capacity by 2035, with a strategic shift toward deregulated markets.
France opens a national consultation on RTE’s plan to invest €100 billion by 2040 to modernise the high-voltage electricity transmission grid.
Governor Gavin Newsom orders state agencies to fast-track clean energy projects to capture Inflation Reduction Act credits before deadlines expire.
Germany’s energy transition could cost up to €5.4tn ($6.3tn) by 2049, according to the main industry organisation, raising concerns over national competitiveness.
Russian group T Plus plans to stabilise its electricity output at 57.6 TWh in 2025, despite a decline recorded in the first half of the year, according to Chief Executive Officer Pavel Snikkars.
In France, the Commission de régulation de l’énergie issues a clarification on ten statements shared over the summer, correcting several figures regarding tariffs, production and investments in the electricity sector.
A group of 85 researchers challenges the scientific validity of the climate report released by the US Department of Energy, citing partial methods and the absence of independent peer review.
Five energy infrastructure projects have been added to the list of cross-border renewable projects, making them eligible for financial support under the CEF Energy programme.
The Tanzanian government launches a national consultation to accelerate the rollout of compressed natural gas, mobilising public and private financing to secure energy supply and lower fuel costs.
The Kuwaiti government has invited three international consortia to submit bids for the first phase of the Al Khairan project, combining power generation and desalination.
Nigeria’s state-owned oil company abandons plans to sell the Port Harcourt refinery and confirms a maintenance programme despite high operating costs.
The publication of the Multiannual Energy Programme decree, awaited for two years, is compromised by internal political tensions, jeopardising strategic investments in nuclear and renewables.
The US Energy Information Administration reschedules or cancels several publications, affecting the availability of critical data for oil, gas and renewables markets.
Brazilian authorities have launched a large-scale operation targeting a money laundering system linked to the fuel sector, involving investment funds, fintechs, and more than 1,000 service stations across the country.
A national study by the Davies Group reveals widespread American support for the simultaneous development of both renewable and fossil energy sources, with strong approval for natural gas and solar energy.
The South Korean government compels ten petrochemical groups to cut up to 3.7 million tons of naphtha cracking per year, tying financial and tax support to swift and documented restructuring measures.
The U.S. Department of Energy has extended until November the emergency measures aimed at ensuring the stability of Puerto Rico’s power grid against overload risks and recurring outages.
Under threat of increased U.S. tariffs, New Delhi is accelerating its energy independence strategy to reduce reliance on imports, particularly Russian oil.
With a new $800 million investment agreement, Tsingshan expands the Manhize steel plant and generates an energy demand of more than 500 MW, forcing Zimbabwe to accelerate its electricity strategy.

Log in to read this article

You'll also have access to a selection of our best content.