The newly signed amendments aim to balance supply and demand effectively.
The amendments respond to the increasing supply of electricity from expanding solar and wind installations across Europe, while energy consumption remains steady. Previously, the electricity from these offshore wind farms was bought at fixed prices through government subsidies, sometimes sold at negative prices in the market, creating financial strain on public budgets and the electrical grid.
The French government stated: “This had a negative impact on public finances and on the electric system.” The updated PPAs aim to stabilize supply and demand, ensuring more efficient grid management. The government highlighted that production reductions were successfully implemented at these wind farms from May 10 to May 11, 2025, demonstrating the effectiveness of the new measures.
Additionally, the government plans to extend similar adjustment mechanisms to larger onshore wind farms operating under older feed-in tariff systems. Most newer renewable energy facilities in France, excluding the smallest ones, already use a feed-in premium system that incentivizes pausing production during negative pricing periods to align with market conditions.
These changes reflect France’s commitment to balancing renewable energy growth with grid stability, optimizing resource use, and supporting sustainable energy practices without disrupting economic or operational efficiency.
