The French Government has reached an agreement in principle with the services of the European Commission on hydroelectricity after a decade of pre-litigation, allowing new investments in French dams. Under the deal, the French state-owned power utility EDF will make 6 GW available to third parties. These virtual capacities will be put up for sale via tender under the control of the Energy Regulatory Commission (CRE).
In addition, the country has agreed with the Commission to transition from a concession system to an authorisation system for the exploitation of hydropower, under terms that have yet to be specified, expected for infrastructure belonging to the Compagnie Nationale du Rhône (CNR), which is subject to a specific legislative status. Finally, the plan allows for the possibility of keeping the current operators in place.
Two pre-litigations have been opposing France and the European Commission for more than ten years regarding the legal regime of the hydroelectric concessions, one related to the non-reopening of expired concessions (2019) and the other concerning the deemed dominant position of the EDF company (2015). This situation has since effectively blocked the modernisation and expansion of hydroelectric installations. France has an hydro capacity of 25.7 GW at end-2024, accounting for 17% of its capacity mix. EDF operates 21 GW of hydro capacity as of 2024, and Engie around 2.3 GW.
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