French renewable developers are racing to secure state-backed contracts before next year's presidential election, fearing a Marine Le Pen government would halt new projects. Polls show the far-right leader with a substantial lead ahead of the May vote, having pledged to stop new wind and solar projects and attack the billions of euros France spends on renewable support.
The latest large solar farm auction was nearly six times oversubscribed, with Electricite de France SA and Reden Solar SAS agreeing to sell power at prices averaging 23% lower than last year. A smaller projects auction was also heavily oversubscribed, pushing prices down 15%. "This is putting pressure on our margins," said Thomas de Moussac of Mexens SAS, which is developing battery storage and seeking growth abroad.
Le Pen has blamed subsidies exceeding €6 billion ($6.7 billion) last year and Macron's energy policy for economic woes. After rapid solar expansion following Russia's 2022 invasion, the backdrop has shifted—power demand remains subdued, renewable generation has grown, and EDF's reactors have returned, prompting scaled-back green targets.
Reden froze hiring in France amid tender uncertainty, expanding instead in Spain, Italy and Germany. Valorem has slashed jobs and costs. Investors accept current price levels "before potentially facing a period without auctions," said Reden CEO Frank Demaille. Large solar projects secured contracts at €61 per megawatt-hour, roughly in line with 2029-2030 wholesale contracts.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing