Paris appoints Jean-Bernard Lévy to review subsidies for renewables
Amid rising public spending, the French government has tasked two experts with reassessing the support scheme for renewable electricity and storage, with proposals expected within three months.
| Sectors | Wind Energy, Solar Energy, Energy Storage, Batteries, Photovoltaic, Onshore |
|---|---|
| Themes | Regulation & Governance, Public Policy |
The French government has assigned Jean-Bernard Lévy, former Chairman and Chief Executive Officer of Électricité de France (EDF), and State Councillor Thierry Tuot to lead a mission assessing public support for renewable energies and electrical storage systems. This move aims to optimise budget allocation under growing fiscal pressure and the increasing maturity of renewable technologies.
A revision driven by rising subsidy costs
The current model is based primarily on contracts guaranteeing fixed prices for producers, regardless of market fluctuations. This system, which enabled the rapid development of solar and wind energy, now imposes significant costs on the state. The 2026 draft budget estimates these commitments at EUR8.2bn ($8.86bn), according to figures from the Prime Minister’s office.
During periods of low demand, surplus renewable production can result in negative prices on wholesale markets. In such cases, the state is required to compensate the gap between the contractual tariff and the market price, increasing fiscal strain.
Towards a more balanced support model
The mission will be expected to propose options to adjust these schemes, including enhancing battery storage capacities. Greater flexibility is presented as a necessary measure to better integrate inherently intermittent renewable energies into the grid.
The Prime Minister specified that the goal is to reach a fairer financial distribution between public and private stakeholders. This direction aligns with broader energy policy reforms, as France’s long-term energy strategy, including the Multiannual Energy Programming (PPE3), remains pending.
Mixed reactions within the sector
Some representatives of the renewables sector consider the audit legitimate, provided it eliminates rent situations. Others question the exclusion of nuclear energy from the scope of the analysis, arguing that its costs—particularly those linked to the Flamanville EPR project—also warrant thorough evaluation.
Marine Le Pen, leader of the Rassemblement National group in the National Assembly, called for strong action on electricity prices during a meeting with Energy Transition Minister Sébastien Lecornu. At the same time, the government is continuing consultations to finalise the decree for PPE3, with publication expected by the end of December.
