Image: Andreas Gucklhorn, Unsplash
The French Ministry for Ecological Transition published the report results of the fourth round of its technology-neutral renewable energy tender, which selected 36 projects with a combined capacity of 507.7 MW against a target of 500 MW.
Photovoltaics accounted for all allocated capacity, marking the first time that no wind energy projects were selected under the scheme. Agrivoltaic projects featured more prominently, underscoring developers’ increasing interest in this asset class in competitive tenders.
Photosol emerged as the biggest winner, securing 129.2 MW for multiple projects, including the biggest prize of the round, a 44 MW solar power plant in the Loir-et-Cher department.
Price data shows continued downward pressure. The weighted average award price was €0.07413 ($0.087)/kWh, a decrease of €0.00647/kWh compared to the previous round. Previous auction prices were €0.07689/kWh in the first round and €0.08519/kWh in the second, reflecting an increase through December 2023, followed by a subsequent decrease.
The geographical distribution remained uneven. Central departments dominated the awards, with Cher hosting the largest number of projects. The southern and south-central departments typically secured two to three projects each, while northern and northeastern France had limited representation.
The French Energy Regulatory Commission (Commission de régulation de l’énergie, CRE) reiterated its recommendation to test a single, unweighted reference market price under the upcoming PPE2 technology-neutral tender. The proposal aims to level competition between technologies, limit budget exposure, reduce risks associated with the cannibalization of renewable energy and encourage the combination of generation assets with storage.
The CRE also renewed previous calls to review the 250 MW per round limit for agricultural projects under Case 2a, suggesting that the limit be increased or removed given its relatively lower average cost. The next tender round will again target 500 MW, with dates yet to be confirmed.
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