France to Scale Back Solar, Wind Plans as Power Demand Slows

hgcqbch7l)w}mpexp5k6ovyf_media_dl_1.png Government presentation, EDF, RT

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(Bloomberg) — The French government has slightly scaled back plans to expand solar and onshore wind capacity as the country grapples with a power surplus driven by a slower-than-expected shift away from fossil fuels.

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The long-awaited energy roadmap, outlining 2030 and 2035 production targets across sources ranging from nuclear and hydropower to biofuels and geothermal, is expected to pave the way for the government to resume subsidy auctions for renewable projects. However, the plan’s future could be short-lived if the National Rally, which opposes wind and solar power, wins next year’s presidential election.

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“Let’s try to have a roadmap that takes us at least until the presidential election and avoids a toxic standstill,” Prime Minister Sebastien Lecornu said during the presentation of his energy plan at a hydro dam in eastern France on Thursday. “Our industrial, climate and geopolitical interests match the interest of consumers.” 

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A surge in renewable capacity and sluggish consumption since the 2022 energy crisis have pushed French power exports to record levels and driven prices sharply lower. While that’s good news for consumers, it’s squeezing profits at state-run nuclear operator Electricite de France SA, complicating efforts to finance plans for six new reactors to replace the country’s aging fleet.

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Under the plan unveiled Thursday, photovoltaic capacity is set to reach 48 gigawatts by 2030, 6 gigawatts less than envisaged in March last year. The 2030 target for onshore wind was reduced by 2 gigawatts, while the 2035 offshore wind goal was cut by 3 gigawatts.      

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While past additions of solar and wind capacities have inflated government subsidies paid to renewable energy producers, the annual bill should peak in coming years at about €9 billion ($10.7 billion), before being halved by 2040 under a median power price scenario, the government said Thursday.

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“We’re broadly satisfied with all these decisions,” said Jules Nyssen, president of Syndicat des Energies Renouvelables, the country’s biggest renewable energy lobby. However, he called for scrapping impediments to the installation of taller wind turbines.      

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State-owned EDF also welcomed the plan to build six new large scale reactors and to study the construction of eight extra units. The French government reiterated plans to support the construction of small and advanced nuclear reactors.  

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While nuclear power is needed to provide power on demand round-the-clock, the first new reactor is not expected to come online until 2038, Finance Minister Roland Lescure said on Thursday. That underscores the need for more solar and wind capacity, which can be built more quickly, he added. All targets will be reviewed as early as next year.

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The additions, along with several new hydro-pumped projects, should lift France’s power output by about 20% by 2035, Lescure said. The government will also present a plan later this year to accelerate the adoption of electric vehicles, heat pumps and electrified industrial processes, as well as to attract more data centers.

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