France’s PPA revolution: why the French PPA market is poised to expand

Unlike those of its neighbors Spain and Germany, France's PPA sector has not been historically robust. But a range of factors are poised to expand the role of renewables in the country’s energy sector, with major regulatory shifts and rising demand for clean energy expected to boost the French PPA market's growth significantly.

LevelTen Energy's Q1 European PPA Price Index takes a deep dive into the French PPA market, analysing key trends and providing valuable insight for renewable developers and buyers seeking to strike gainful PPA deals in today’s market.

This blog provides a brief overview of the key trends to be aware of in the French energy market. For the full breakdown, subscribe to receive the full Q1 European PPA Price Index. You’ll get a comprehensive guide to the latest developments in the country’s energy sector and the current outlook for PPAs. As always, the report uncovers PPA prices and trends across Europe, including analysis of issues impacting the market, regulatory updates, and more. 

The French energy market at a glance

France's historical dependence on nuclear power makes it an outlier among European nations, and second only to the United States for total nuclear capacity worldwide. The country’s 61 GW of nuclear generation accounts for a full 70% of the total electricity mix, with wind and solar producing just 13% — placing France well below the EU average of 27% for combined solar and wind capacity.

However, the future of France’s nuclear production — which currently makes the country one of Europe’s largest exporters of electricity — is not particularly clear. President Macron’s heralding of a nuclear “renaissance” in 2022 revised upward the government’s previously stated aim of reducing the technology’s capacity to 50% of the country’s total power output, though the state’s top audit body has since questioned the feasibility of the president’s ambitious plans for further nuclear buildout.

While we expect nuclear to retain its dominant position in the country’s energy profile for many years to come, currents in the political and industrial spheres are making renewables an increasingly attractive, and likely necessary, component of France’s power mix and energy future.

A fractured political landscape

As robust as its nuclear capacity may be, France's ambitious plans to electrify its economy mean it will need to produce much more electricity in the coming years, with consumption in the country projected to reach as high as 640 TWh by 2035. This has led France’s TSO, Réseau de Transport d'Électricité, to call for a threefold increase in renewable capacity by the same year.

Solar installations in France are set to grow significantly, while the future for onshore wind — which has faced vague criticism from the Republicans and the threat of divestment from National Rally — faces a more complex path forward. Offshore wind, on the other hand, appears to have stronger support from lawmakers, with the government announcing priority zones for offshore wind development in October capable of hosting as much as 9.2 GW of capacity. A second offshore wind initiative was launched in March 2025, with successful tenders for floating offshore wind projects held in December 2024.

France's political arena remains turbulent, with the dust yet to fully settle after December’s shock collapse of Michel Barnier’s nascent government. The country's increasingly fragmented political landscape, a shift from its traditional two-party system, is compounding uncertainty. Nonetheless, it remains clear that renewable energy is likely to play a fundamental role in supporting the country’s energy needs and decarbonisation ambitions in the years ahead. 

Key policy changes are expected to significantly open up renewable energy development in the country, while negative pricing concerns and tepid industrial growth are unlikely to considerably temper demands on renewable energy production. Get the full picture in the PPA Price Index.

An attractive option for energy buyers

Shifts in France's regulatory landscape are likely to significantly change the game for PPA buyers. Modifications to the RE100's technical criteria for Guarantees of Origin (GOs) qualification will make new-build wind and solar assets the most attractive option for sustainability-minded buyers, while the imminent phase out of the country's longstanding AREHN program (which provided fixed-priced nuclear capacity to large energy buyers) will make PPAs more desirable for organisations seeking to minimise their exposure to electricity price volatility.

At LevelTen, we are seeing sustained growth in PPA demand in France as buyers seek to hedge against market uncertainty.

Compared with the volatility of the wholesale market, the benefits of long-term, fixed-price electricity contracts for energy buyers speak for themselves. 

Download the Q1 PPA Price Index for our full in-depth analysis of the French PPA market, which covers all the themes mentioned above in granular detail, including many aspects not addressed here. Access recent price trends, market comparisons with similar countries, an overview of offers by tenor for solar and wind, and much more. The PPA Price Index also includes up-to-date PPA prices across Europe, with in-depth market analysis and regulatory updates.

Don't make crucial business decisions without a full picture of the market. Go to https://www.leveltenenergy.com/ppa to download your PPA Price Index today.

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