popular articles

PPAs gain ground in France despite limited adoption

France’s energy regulator unveils its first observatory dedicated to renewable electricity purchase agreements, highlighting a recent but still marginal growth compared to State-backed mechanisms.

Please share:

The Commission de régulation de l’énergie (CRE) published on April 10 its first observatory on electricity purchase agreements, known as Power Purchase Agreements (PPAs), concerning renewable production assets located in mainland France. This initiative, based on data collected in 2023 from 47 stakeholders, provides a detailed overview of the characteristics of these contracts signed between producers and buyers, outside any public support framework.

The analysed annual volume amounts to 3.3 terawatt hours (TWh) for a total installed capacity of 2.2 gigawatts (GW), including 1.9 GW from photovoltaic energy and 0.35 GW from onshore wind. Of the 162 installations considered, 141 are photovoltaic parks, 18 are wind farms, and 3 are cogeneration or waste heat recovery units. This volume remains modest compared to capacities installed through public tenders between 2019 and 2023, estimated at 7 GW for photovoltaics and 5 GW for wind power.

A boost driven by wholesale price tensions

The momentum behind PPA signings increased significantly in 2022 and 2023, driven by volatile energy prices and the broader energy crisis. This trend slowed in 2024 as wholesale market prices declined. Buyers are mainly large companies with strong financial guarantees. For these actors, PPAs cover only a fraction of their total electricity needs but provide price certainty.

The average contract duration in France reaches 19 years, a level higher than the European average of 13 years, according to a 2022 study by consultancy E-Cube. This extended duration, similar to that of State-supported contracts, reflects a rare long-term commitment in unsubsidised markets.

Expanding the regulatory scope and strengthening mechanisms

The CRE has identified several levers to support the growth of these contracts. It recommends extending counterparty risk guarantee schemes to enable more buyers, especially mid-sized companies, to access PPAs. It also suggests assessing the integration of PPAs into global supply portfolios and their potential role in meeting prudential obligations.

Finally, to improve transparency and monitoring in this emerging market, the CRE proposes introducing a mandatory declaration of PPAs within the French Energy Code. This measure would facilitate regular updates to the observatory and the adjustment of recommendations based on market developments.

Register free of charge for uninterrupted access.

Publicite

Recently published in

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.
Nominated to lead EDF, Bernard Fontana aims to restore dialogue with electro-intensive industries and oversee the nuclear revival while ensuring the group’s financial sustainability.
Nominated to lead EDF, Bernard Fontana aims to restore dialogue with electro-intensive industries and oversee the nuclear revival while ensuring the group’s financial sustainability.
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.
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.
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.
Argentina initiates Enarsa's privatization to redefine the state's role toward stronger regulation, paving the way for increased private investment in the national energy sector amid significant industrial and commercial transformation.
Argentina initiates Enarsa's privatization to redefine the state's role toward stronger regulation, paving the way for increased private investment in the national energy sector amid significant industrial and commercial transformation.
The British environmental movement Just Stop Oil organised its final march in London on Saturday, announcing the end of its spectacular actions against new oil and gas projects in the United Kingdom.
The Dutch government is unlocking €11.4 billion aimed at securing industrial energy supplies, strengthening electricity infrastructure, and accelerating civilian nuclear development, in response to current economic and energy constraints.
The Dutch government is unlocking €11.4 billion aimed at securing industrial energy supplies, strengthening electricity infrastructure, and accelerating civilian nuclear development, in response to current economic and energy constraints.
France proposes a stronger alliance between the European Union and China to counter the absence of the United States in the fight against climate change, with a summit scheduled for July 2025.
France proposes a stronger alliance between the European Union and China to counter the absence of the United States in the fight against climate change, with a summit scheduled for July 2025.
Hydro-Québec announces a 10 G$ investment to enhance energy efficiency through various initiatives by 2035, creating over 5,000 jobs and reducing operating costs for Quebec customers.
Hydro-Québec announces a 10 G$ investment to enhance energy efficiency through various initiatives by 2035, creating over 5,000 jobs and reducing operating costs for Quebec customers.
The UK government and Italian energy company Eni have announced the financial closing of a project aimed at burying millions of tonnes of CO2 in the Irish Sea, an ambitious initiative to reduce industrial emissions.
The United States strongly criticised anti-fossil fuel policies at the International Energy Agency (IEA) summit, highlighting their dangers to global energy security.
The United States strongly criticised anti-fossil fuel policies at the International Energy Agency (IEA) summit, highlighting their dangers to global energy security.
Countries such as Brazil and Australia are criticised for overstating the CO2 absorption capacity of their forests, a practice that undermines their commitment to reducing greenhouse gas emissions, according to a report by Climate Analytics.
Countries such as Brazil and Australia are criticised for overstating the CO2 absorption capacity of their forests, a practice that undermines their commitment to reducing greenhouse gas emissions, according to a report by Climate Analytics.
In London, global officials gather to discuss energy security amid rising geopolitical tensions. Disagreements persist on the role of renewable energy in meeting global demand.
In London, global officials gather to discuss energy security amid rising geopolitical tensions. Disagreements persist on the role of renewable energy in meeting global demand.
As a parliamentary debate approaches, twenty energy organizations urge lawmakers to act to reduce France's reliance on fossil fuels by accelerating the electrification of uses.
Nigeria aims to increase its electricity production capacity by 4,000 MW by 2026 to meet the growing demand of the industrial sector, in a context of reforms and partnerships with international players.
Nigeria aims to increase its electricity production capacity by 4,000 MW by 2026 to meet the growing demand of the industrial sector, in a context of reforms and partnerships with international players.
EDF’s outgoing CEO, Luc Rémont, claims French electricity will be more competitive than that of the United States, despite ongoing criticisms from industrialists about high tariffs.
EDF’s outgoing CEO, Luc Rémont, claims French electricity will be more competitive than that of the United States, despite ongoing criticisms from industrialists about high tariffs.
Donald Trump's aggressive trade policies and regulatory uncertainty in the United States are slowing investments in wind, solar, and energy storage, pushing the sector into a period of caution and market volatility.
Donald Trump's aggressive trade policies and regulatory uncertainty in the United States are slowing investments in wind, solar, and energy storage, pushing the sector into a period of caution and market volatility.
Paris releases a new €400mn funding package to support industrial projects aimed at reducing emissions under the France 2030 programme.
The massive withdrawal of American financial support and the reduction of European aid could jeopardize energy projects in Africa, profoundly altering their financing structure and the continent's commitments.
The massive withdrawal of American financial support and the reduction of European aid could jeopardize energy projects in Africa, profoundly altering their financing structure and the continent's commitments.
The Vietnamese government has raised its renewable energy targets in a new version of its national energy plan, responding to continued growth in electricity demand.
The Vietnamese government has raised its renewable energy targets in a new version of its national energy plan, responding to continued growth in electricity demand.
A massive outage plunged Puerto Rico into darkness on Wednesday, leaving approximately 1.1 million households without electricity after an unexpected shutdown of all its power plants.
A massive outage plunged Puerto Rico into darkness on Wednesday, leaving approximately 1.1 million households without electricity after an unexpected shutdown of all its power plants.

Advertising