Wind Energy – France
The French government has finalised amendments to power purchase agreements (PPAs) with three offshore wind farms: the municipalities of Fécamp, Saint-Nazaire, and Saint-Brieuc are served by Électricité de France (EDF) and Iberdrola.
These changes enable wind farms to reduce or halt production during periods of negative electricity pricing, thereby addressing challenges posed by excess power generation.
The recently ratified amendments are designed to achieve an effective balance between supply and demand.
The amendments are a response 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 purchased at fixed prices through government subsidies, and sometimes sold at negative prices in the market. This has created financial strain on public budgets and the electrical grid.
The French government has issued the following statement: It is evident that this has had a detrimental effect on public finances and the electricity system. The updated PPAs are designed to stabilise supply and demand, thereby ensuring more efficient grid management.
The government highlighted that production reductions were successfully implemented at these wind farms from 10 to 11 May 2025, demonstrating the effectiveness of the new measures.
Furthermore, the government intends to extend comparable adjustment mechanisms to larger onshore wind farms operating under older feed-in tariff systems. The majority of new renewable energy facilities in France, except the smallest, already use a feed-in premium system that incentivises production pauses during negative pricing periods to align with market conditions.
These changes reflect France’s commitment to balancing renewable energy growth with grid stability, optimising resource use, and supporting sustainable energy practices without disrupting economic or operational efficiency.
