France has reached an agreement with the European Commission to resolve two longstanding disputes that have hindered investment in its hydroelectric sector for over a decade, the government said on Thursday.
The disputes, which date back to 2015 and 2019, centred on the lack of competitive re-tendering for expired hydroelectric concessions and concerns over the dominant market position of state utility EDF.
The French government said the resolution will pave the way for renewed investment in dams and hydropower infrastructure, contributing to the country’s climate targets and energy sovereignty.
“After more than ten years of pre-contentious disputes, a path has finally been cleared to lift this blockage and restart investment in French hydroelectric dams,” said Prime Minister François Bayrou.
Under the agreement, a new three-part framework will replace the current concession model with an authorisation regime, the government said. Assets belonging to Compagnie Nationale du Rhône will be excluded due to their distinct legislative status.
To ensure continuity of service and maintain local employment, existing operators will remain in place, and responsibilities for water management will be preserved.
As part of the settlement, EDF will make 6 gigawatts of hydroelectric capacity available to third parties through competitive auctions managed by France’s energy regulator, the Commission de régulation de l’énergie (CRE).
The structure of the agreement draws on recommendations from a parliamentary fact-finding mission led by lawmakers Marie-Noëlle Battistel and Philippe Bolo, who are now preparing to introduce legislation in support of the reform.
Bayrou acknowledged the contributions of Battistel, Bolo, energy minister Marc Ferracci, civil services and the European Commission in reaching the agreement.
