Energy in France: Current Trends and Challenges

Electricity Market Regulation: New Challenges

The electricity market in France is constantly evolving, with new regulatory challenges emerging. A new regulation, soon to be applicable, is awaited by stakeholders due to initial lack of clarity.

Capacity Mechanism

The capacity mechanism is a central element of this regulation and will come into effect in November 2026. It is funded by electricity suppliers, large consumers, and grid operators.

• Its objective is to remunerate the availability of production rather than the production itself.
• This ensures security of supply.
• RTE (Réseau de Transport d'Électricité - Electricity Transmission Network) plays a crucial role in assessing needs and proposing scenarios.

Market Liberalization

The liberalization of the electricity market in France is a process that began in the 1990s. This transition has moved from a state monopoly (EDF) to a competitive market.

• The NOME law (New Organization of the Electricity Market) of 2010 and the ARENH mechanism (Regulated Access to Incumbent Nuclear Electricity) have marked this transition.
• It is overseen by the CRE (Commission de Régulation de l'Énergie - Energy Regulatory Commission) and the Médiateur national de l’énergie (National Energy Mediator).
• This evolution aims to encourage efficiency and innovation in the market.

Electricity Production: Energy Mix and Decarbonization

Electricity production in France is characterized by an increasingly decarbonized energy mix. RTE's 2025 Electricity Balance highlights record production.

Hyper-electrification

France is favorably positioned for hyper-electrification. This is due to a predominantly low-carbon production thanks to nuclear and renewable energies.

• According to current data, this orientation reduces the carbon footprint of the energy sector.

Curtailment of Renewables

The curtailment of renewable energies, i.e., the limitation of their production due to constraints on the network, doubled in 2025. It reached approximately 3 TWh.

• This phenomenon highlights the need to improve energy management and storage to optimize the use of renewable sources.
• RTE forecasts an increase in electricity consumption by 2035, requiring an adaptation of the production fleet.

Impact of Gas Prices on the Electricity Market

Natural gas prices have a significant influence on the electricity market, particularly in Europe. Geopolitical tensions and fluctuations in the TTF (Title Transfer Facility) index contribute to this volatility.

Rise in Gas Prices

The rise in gas prices, exacerbated by geopolitical tensions, can impact electricity costs. This is particularly true in countries heavily dependent on gas for their electricity production.

• France, thanks to its nuclear fleet, is relatively protected from these fluctuations.
• However, a portion of the electricity produced in France remains indexed to the price of gas, which can lead to price variations for consumers.
• At Unisave, we closely monitor these developments to best advise our clients.

Increase in Gas Bills

Several increases in gas bills have been observed recently. An increase of 5.3% for heating and 4% for cooking/hot water occurred in March 2026.

• Bercy (Ministry of Economy and Finance) also forecasts an increase in gas bills in May for a majority of consumers, due to the geopolitical situation.
• These successive increases can weigh heavily on the budget of households and businesses.
• On March 1st, 5 million households experienced a 4% increase in the price of gas.
• These increases make controlling consumption and seeking energy alternatives even more crucial.

Energy Transition of Companies and Public Policies

The energy and ecological transition is a major issue for companies. It involves reducing energy consumption, using renewable energy sources, and improving energy efficiency.

Strengthened EECs

The Energy Savings Certificates (EECs) program is an essential tool for encouraging energy savings. It will be strengthened in 2026, with more than 8 billion euros dedicated to energy savings until 2030.

• The 6th period (2026-2030) will see a 27% increase in energy saving obligations.
• These EECs can help companies finance energy efficiency projects and reduce their energy bills.
• Unisave assists many companies in optimizing their energy expenditure.

You can also consult our article on frequent errors on energy bills: frequent errors on energy bills.

Support for Renewable Energies

Renewable energies require public support to remain competitive. The goal is to reach 33% of energy consumption from renewable sources by 2030.

• In 2025, wind and solar surpassed fossil fuels in the EU.
• Investing in renewable energies is therefore a path to the future to ensure France's energy sovereignty and reduce its environmental impact.

For any questions regarding your energy strategy, do not hesitate to contact Unisave.